If the Amount of a Probable Loss on a Contingent

question 4

Multiple Choice

If the amount of a probable loss on a contingent liability is not determinable,the liability should be

• A)accrued and indicated in the body of the financial statements.
• B)disclosed in footnotes but not accrued.
• C)neither accrued nor disclosed in footnotes.
• D)disclosed in the auditor's report but not disclosed on the financial statements.

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Definitions:

Deficiency Needs

Deficiency needs are basic human requirements that must be met for individuals to develop normally, according to Abraham Maslow's hierarchy of needs.

Growth Need

Refers to an individual's desire for personal development, particularly in terms of acquiring new skills, challenges, and opportunities for advancement.

ERG Theory

A theory of human motivation that categorizes needs into three categories: Existence, Relatedness, and Growth, suggesting that more than one need can be operative at the same time.

Expectancy Theory

A motivational theory stating that an individual's motivation is influenced by the belief that effort will lead to performance and performance will lead to desired rewards.