Adjustment of the Financial Statement May Be Necessary If the Contingent

question 27

Multiple Choice

Adjustment of the financial statement may be necessary if the contingent liability is:

• A) remote.
• B) probable.
• C) reasonably possible.
• D) none of the above

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Definitions:

Tariff

A tax imposed by a government on imported or exported goods.

Total Surplus

The sum of consumer and producer surplus, representing the total benefit to society from the production and consumption of goods or services.

Trade

The exchange of goods, services, or both between two or more parties.

Producer Surplus

The difference between the amount a producer is paid for a good or service and the minimum amount they are willing to accept for producing it.