Which of the Following Accurately Describes How Contingent Liabilities Are

question 162

Multiple Choice

Which of the following accurately describes how contingent liabilities are reported on the Balance Sheet?

• A)Contingent liabilities are not reported.
• B)Contingent liabilities are disclosed in the footnotes only.
• C)Contingent liabilities are reported in the liabilities section.
• D)The accounting treatment for contingent liability could be A, B, or C depending on the likelihood of an actual obligation occurring.

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Definitions:

Set Control Defaults

The process of establishing default settings for controls in a software application to guide user interactions.

Subform/Subreport

A subordinate form or report incorporated within a main form or report, used to display related data from a side table or query in database applications.

Tab Control

A graphical control element that allows multiple documents or panels to be contained within a single window, using tabs as navigational widgets.

Text Box

A graphical interface element that allows users to input text into a document or application.