Use the Following Key (A-D) to Identify the Proper Treatment

question 140

Multiple Choice

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is remote and amount is not estimable

• A)Record only
• B)Record and disclose
• C)Disclose only
• D)Do not record or disclose

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Definitions:

Poisson Distributed

A probability distribution that measures the likelihood of a given number of events happening in a fixed interval of time or space.

Exponentially Distributed

A probability distribution that describes the time between events in a Poisson process, showing continuous and memoryless properties.

Poisson Distributed

Poisson distributed is a statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events happen with a known constant mean rate and independently of the time since the last event.