If the Amount of a Probable Loss on a Contingent

question 52

Multiple Choice

If the amount of a probable loss on a contingent liability cannot be estimated but the event is likely,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:

Arbiter of Disputes

An impartial third party, often a mediator or arbitrator, who is called upon to resolve a dispute or conflict between two or more parties.

Skilled Craft Workers

Individuals with specialized training and expertise in specific trades who are capable of performing complex tasks within their area of expertise.

Industrial Workers

Individuals employed in sectors concerned with producing goods through physical labor and machinery, often in factories or production lines.

Critical Industrial Relations

The examination of labor relationships, focusing on power dynamics, conflict resolution, and the impact of external factors.