Homer Security Systems Experienced an Event That Had the Following

question 138

Multiple Choice

Homer Security Systems experienced an event that had the following effects on its financial statements. Which of the following events would have caused these effects?

• A)Recognizing a contingent liability that has a remote chance of occurring
• B)Recognizing a contingent liability that has a reasonably possible chance of occurring but is not estimable
• C)Recognizing a contingent liability that has a probable chance of occurring and is estimable
• D)All of the answers describe events that could have caused the effects shown in the financial statements model.

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Definitions:

Customers

Individuals or businesses who purchase goods or services from another entity.

Expected Value

The average outcome of a random variable, calculated as the sum of all possible values each multiplied by their respective probability of occurrence.

Raffle Tickets

Tickets sold as a means to raise money for a cause, with the chance of winning prizes.

Binomial Distribution

a probability distribution describing the number of successes in a fixed number of independent Bernoulli trials, with a constant probability of success.