Which of the Following Scenarios Regarding a Lawsuit Filed Against

question 24

Multiple Choice

Which of the following scenarios regarding a lawsuit filed against a client by a third party would qualify as a "contingent liability"?

• A)A lawsuit has been filed but not yet resolved.
• B)A lawsuit was filed and concluded with the client winning.
• C)A lawsuit was filed and concluded with a third party winning an award of $100 000,but the client hasn't paid yet.
• D)A lawsuit was filed and concluded with a third party winning an award of $100 000,which the client paid after the balance sheet date but before the statements were issued.

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Definitions:

Hoarding Disorder

A persistent difficulty discarding or parting with possessions due to a perceived need to save them, resulting in clutter that disrupts the ability to use living or work spaces.

Panic Disorder

An anxiety disorder characterized by recurrent unexpected panic attacks and persistent concern about having additional attacks.

Body Dysmorphic Disorder

A mental health disorder characterized by obsessive focus on perceived flaws in one's physical appearance, often leading to significant distress and impairment in daily functioning.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by problems with focus, hyperactivity, and impulsiveness.