Jake Company Is Involved in a Lawsuit

question 40

Multiple Choice

Jake Company is involved in a lawsuit. The liability which could arise as a result of this lawsuit should be recorded on the books if the probability of Jake owing money as a result of the lawsuit is which of the following?

• A) Remote and the amount can be reasonably estimated.
• B) Probable and the amount cannot be reasonably estimated.
• C) Reasonably possible and the amount can be reasonably estimated.
• D) Probable and the amount can be reasonably estimated.

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Definitions:

Equality

The state of being equal, especially in status, rights, and opportunities.

Least Advantaged

Referring to individuals or groups that are most disadvantaged or lacking in resources, opportunities, and support in a society.

Parties

Social gatherings of invited guests, typically involving eating, drinking, and entertainment; can also refer to political groups organized to gain authority within a government.

Rawls

A philosopher known for his theory of justice as fairness, emphasizing equal basic rights, liberty, and the distribution of social goods.