Which of the Following Statements Regarding Contingencies Is True

question 136

Multiple Choice

Which of the following statements regarding contingencies is true?

• A)Contingencies that are probable and estimable must be recorded before the outcome of future events.
• B)Contingent assets,if probable and estimable,are treated in much the same way as contingent liabilities.
• C)The accounting principle that determines whether a contingent asset is recorded is that of materiality.
• D)Contingencies that are not estimable should not be disclosed even if probable.

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Definitions:

De Novo Review

De Novo Review is a form of appeal in which the reviewing court considers the matter anew, as if it had not been heard before and no decision previously made.

Clearly Erroneous

A standard of review for an obvious mistake in judgment or procedure.

Cross-examination

A stage in a legal trial where one party questions a witness called by the opposing party to challenge the testimony given.

Prosecution's Witness

A witness called by the prosecution in a criminal case to testify in support of the case against the defendant.