The Disclosure of a Contingent Liability in the Footnotes and on the Balance

question 1

Multiple Choice

The disclosure of a contingent liability in the footnotes and on the Balance Sheet indicates that the potential for the obligation occurring is:

• A)remote.
• B)possible.
• C)probable.
• D)certain.

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Definitions:

Building Owner

An individual or entity that holds title to a building or property.

Economic Loss

A financial loss suffered by a person or organization, often due to damage or negligence.

General Duty

An obligation imposed on individuals or organizations to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Intervening Causes

Events that occur after a defendant's negligent act and contribute to a plaintiff's injury, potentially affecting liability and damages.