The Argyle Corp

question 47

Multiple Choice

The Argyle Corp. is the defendant in a lawsuit involving someone who was injured on its property in 2016. At the end of 2017, the company's attorneys tell the company that it is "reasonably possible" that the company will lose the suit, and the most likely amount it will have to pay is $400,000. This is a material number. The proper accounting is to

• A) Neither disclose anything nor accrue a liability
• B) Disclose the facts, and not accrue any liability
• C) Accrue a $400,000 liability, but do not make a disclosure
• D) Accrue a $400,000 liability and make a disclosure of the facts

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Definitions:

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Suicidal Thoughts

Thoughts about taking one's own life, which can range from abstract thoughts about suicide to detailed planning.

Sodium Intake

The quantity of sodium consumed, typically measured in regards to diet and its effects on health, particularly blood pressure.

Situational Low Self-Esteem

A temporary decline in self-esteem triggered by external events or situations, distinct from chronic or global low self-esteem.