When the Amount of a Contingent Liability Cannot Be Reasonably

question 11

Multiple Choice

When the amount of a contingent liability cannot be reasonably estimated but its likelihood is probable,the company should:

• A)include a description in the notes to the financial statements.
• B)record the amount of the liability times the probability of its occurrence.
• C)record the amount of the liability as a long-term liability on the balance sheet.
• D)exclude the information about the contingent liability from its financial statements and footnotes.

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Definitions:

Women

Adult female human beings.

Health Disparities

Differences in health outcomes and their determinants between segments of the population, as influenced by social, environmental, and economic factors.

Ethnic Health

Aspects of health and illness that are unique or more prevalent within specific ethnic groups, often influenced by genetic, environmental, and social factors.

Economic Differences

The disparities in wealth, income, and access to resources between individuals, communities, or countries.