Which of the Following Types of Contingencies Would NOT Be

question 59

Multiple Choice

Which of the following types of contingencies would NOT be disclosed on the financial statements until it has been resolved?

• A) A lawsuit against our company and it is probable that we will lose
• B) A lawsuit against our company and it is reasonably possible we will lose
• C) A lawsuit we have filed against a competitor and it is probable that we will win
• D) All of these must be disclosed on the financial statements

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Definitions:

Utility-maximizing

Refers to the economic principle where individuals or households attempt to get the highest level of satisfaction from their resources.

Income

The money received, especially on a regular basis, for work or through investments.

Marginal Utility

The increased enjoyment or value one gets from the consumption of an extra unit of a good or service.

Marginal Utility

The added satisfaction or usefulness obtained from using one more unit of a product or service.