When the Proper Disclosure in the Financial Statements of Material

question 70

Multiple Choice

When the proper disclosure in the financial statements of material contingencies is through footnotes,the footnote should describe the nature of the contingency to the extent it is known and

• A)the auditor's opinion as to the expected outcome.
• B)the opinion of legal counsel or management as to the expected outcome.
• C)an estimate of the amount or a statement that the amount cannot be estimated.
• D)the steps the client has taken to ensure that it doesn't recur.

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Definitions:

Failed To Make

Refers to the inability or omission of completing a particular action, such as making a payment or fulfilling an obligation.

Equal Payments

Equal payments entail a financial agreement where payments or installments remain consistent over a specified period.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, commonly expressed as an annual percentage of the loan outstanding.

Missing Value

A term used in statistics and data analysis for a data point that is not recorded or is unknown.