RST Has Been Sued by a Competitor for a Potential

question 7

Multiple Choice

RST has been sued by a competitor for a potential copyright infringement. Legal advice is divided over the likelihood of the success of the claim and the likely damages, if any. It would be shown as:

• A) an accrual on the balance sheet.
• B) a provision on the balance sheet.
• C) a contingent liability on the balance sheet.
• D) a contingent liability in the notes to the accounts.