During the Year,a $1,000,000 Lawsuit Was Filed Against a US

question 108

Multiple Choice

During the year,a $1,000,000 lawsuit was filed against a US company for unsafe working conditions.Management and the attorneys feel that it is not likely that the company will lose the case.The plaintiff who filed the lawsuit has offered to settle for $600,000.Management estimates that lawsuits for unsafe working conditions are generally settled for $300,000.What amount of contingent liability would be recorded for this lawsuit on the current balance sheet?

• A)$100,000
• B)$600,000
• C)$300,000
• D)$0

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Definitions:

Cause Advocacy

The activity of fighting for, defending, or pleading on behalf of a cause or issue to bring about social change.

Case Advocacy

The act of actively supporting and representing a client’s interests or needs to obtain services or resources that enhance their well-being.

Vulnerability

A state or condition of being open to harm, damage, or attack.

The Adversary

Describes an entity or individual that opposes or competes against another, often used in legal, military, or competitive settings.