If It Is Likely That a Company Will Lose a Lawsuit

question 15

Multiple Choice

If it is likely that a company will lose a lawsuit and the amount can be reliably estimated then the company must

• A) record the asset.
• B) disclose only in the notes to the financial statements.
• C) not record or disclose any information.
• D) record the loss and the liability.

---

Definitions:

Postconditions

Conditions that must be true after the execution of a function or a block of code, used to verify the correctness of the program.

Power Method

An iterative algorithm used in numerical linear algebra to approximate the leading eigenvalue and corresponding eigenvector of a matrix.

Accessor Methods

Accessor methods are methods in object-oriented programming used to access the values of private variables, providing a way to retrieve data without directly exposing the variables.

Mutator Methods

Methods designed to set or change the state of an object's variables.