No Disclosure in the Financial Statement Is Necessary If the Contingent

question 18

Multiple Choice

No disclosure in the financial statement is necessary if the contingent liability:

• A) is remote.
• B) is probable.
• C) is reasonably possible.
• D) has occurred.

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Definitions:

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Currency

Currency is a system of money in general use in a particular country, facilitating the exchange of goods and services.

Coins

Metallic forms of money that are legally authorized by a government, typically used as a medium of exchange for goods and services.

Liquid Investments

Investments that can be easily converted into cash without significantly affecting their market price.