Under What Condition Should a Pending Lawsuit Be Recognized as a Liability

question 74

Multiple Choice

Under what condition should a pending lawsuit be recognized as a liability on a company's balance sheet?

• A)The amount can be reasonably estimated.
• B)The outcome is probable.
• C)The outcome is reasonably possible.
• D)The outcome is probable and can be reasonably estimated.

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Definitions:

Sample

A selected subset of a population, chosen for the purpose of analysis or scientific study, intended to represent the larger group.

Biological Perspective

An approach in psychology focusing on the understanding of human behavior from a biological standpoint, examining genetic, neurological, and physiological processes.

Thoughts

Mental cognitive processes involving the organization and understanding of information, as well as the forming of beliefs and attitudes.

Fantasies

Imagined scenarios or sequences of events that are often improbable or impossible.