A Contingent Liability Is Recorded in the Accounting Records

question 2

Multiple Choice

A contingent liability is recorded in the accounting records

• A) if a reasonable estimate of the expected loss can be determined and if it is probable.
• B) if the contingency has not already been disclosed in the notes to the financial statements.
• C) if it will possibly become an actual liability, and the exact amount is unknown.
• D) under no circumstances.

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Definitions:

Surgical Procedure

A medical operation intended to diagnose or treat a condition through manual or instrumental techniques.

IV Fluids

Solutions administered directly into the bloodstream via an intravenous route to maintain fluid balance, administer medication, or correct electrolyte imbalances.

Axillary Temperature

Axillary temperature is a way to measure body temperature by placing a thermometer in the armpit.

Core Temperature

The temperature of the internal environment of the body, which is maintained within a narrow range for optimal physiological functioning.