If a Loss Contingency Related to a Lawsuit Against a Firm

question 17

Multiple Choice

If a loss contingency related to a lawsuit against a firm is deemed to have a remote probability of requiring ultimate payment, then the proper accounting treatment of the loss contingency will

• A)increase the debt/equity ratio.
• B)increase the debt/asset ratio.
• C)have no effect on earnings per share.
• D)increase the quick ratio.

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A field of practice involving individuals who are trained and licensed to provide health care and medical treatment to patients.

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