Which of the Following Is Correct with Respect to a Contingent

question 131

Multiple Choice

Which of the following is correct with respect to a contingent liability that is "reasonably possible" but "cannot reasonably be estimated"?

• A) It must be recorded and reported as a liability.
• B) It does not need to be recorded or reported as a liability.
• C) It must only be disclosed as a note to the financial statements.
• D) It must be reported as a liability, but not recorded.

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Definitions:

Psychotherapist

A professional trained to diagnose and treat mental health issues through various forms of therapy.

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, extending from depression and anxiety to schizophrenia.

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A professional who provides expert advice on diet, food, and nutrition to help individuals achieve specific health goals.

Family Medicine

A medical specialty devoted to comprehensive healthcare for people of all ages, emphasizing a continuous patient-physician relationship.