If the Amount of a Probable Loss on a Contingent

question 4

Multiple Choice

If the amount of a probable loss on a contingent liability is not determinable,the liability should be

• A)accrued and indicated in the body of the financial statements.
• B)disclosed in footnotes but not accrued.
• C)neither accrued nor disclosed in footnotes.
• D)disclosed in the auditor's report but not disclosed on the financial statements.

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Definitions:

Legal Rights

Legal rights are entitlements and protections granted to individuals under the law, which can include rights to property, fair trial, free speech, and privacy.

Abigail Adams

An influential figure in American history, wife of President John Adams, known for her early advocacy of women's rights and opposition to slavery.

Northwest Territory

A historic region northwest of the Ohio River that was established as the first organized territory of the United States in 1787, setting a pattern for future statehood.

Indian Tribes

Indigenous peoples in the United States, each with their own distinct cultures, languages, histories, and governments recognized by the federal government as sovereign entities.