When the Proper Disclosure in the Financial Statements of Material

question 70

Multiple Choice

When the proper disclosure in the financial statements of material contingencies is through footnotes,the footnote should describe the nature of the contingency to the extent it is known and

• A)the auditor's opinion as to the expected outcome.
• B)the opinion of legal counsel or management as to the expected outcome.
• C)an estimate of the amount or a statement that the amount cannot be estimated.
• D)the steps the client has taken to ensure that it doesn't recur.

---

Definitions:

Bargaining Structure

The framework within which collective bargaining negotiations occur, including the levels at which negotiations are conducted and the parties involved.

Associate Union Membership

Alternative form of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining.

Collective Bargaining

The process of negotiation between employers and a group of employees (often represented by a union) aimed at reaching agreements to regulate working conditions, wages, and benefits.

Consent Election

A method used by workers to form a union in which they express their desire to unionize through signed authorization cards.