If a Contingent Liability Is Reasonably Estimable and It Is

question 4

Multiple Choice

If a contingent liability is reasonably estimable and it is reasonably possible that the contingency will occur, the contingent liability

• A)should be recorded in the accounts.
• B)should be disclosed in the notes accompanying the financial statements.
• C)should not be recorded or disclosed in the notes until the contingency actually happens.
• D)must be paid for the amount estimated.

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Definitions:

Learning Selectivity

The process by which individuals or animals selectively focus on certain stimuli while ignoring others during the learning process, influenced by various factors such as relevance and past experience.

Constraint on Learning

Factors or conditions that limit or influence the process and effectiveness of learning.

Instinctive Drift

A phenomenon where learned behavior reverts to an organism's instinctual patterns, overriding conditioning.

Pigs

Domesticated mammals known for their intelligence, social behavior, and as a source of food products.