Which of the Following Statements Regarding Contingencies Is True

question 72

Multiple Choice

Which of the following statements regarding contingencies is true?

• A)Contingencies that are probable and not estimable appear on the balance sheet.
• B)Contingencies that are probable and not estimable are disclosed in the notes to the financial statements.
• C)Contingencies that are remote but estimable are disclosed in the notes to the financial statements.
• D)Contingent assets are recorded on the balance sheet,but not in the notes to the financial statements.

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Definitions:

Confidence Interval

A set of values generated from sample data, believed to capture the value of an unspecified population parameter.

Ground Beef

Minced or finely chopped beef that is commonly used as a cooking ingredient.

Confidence Interval

A range of values that is used to estimate the true value of a population parameter with a certain level of confidence.

Independent Random Samples

Samples selected from a population in such a way that each individual sample is chosen randomly and independently from one another.