A Disclosure of a Contingent Liability in the Footnotes Is

question 41

Multiple Choice

A disclosure of a contingent liability in the footnotes is made rather than adjusting the financial statement accounts when:

• A)the outcome of the event is judged to be probable and the loss can be reasonably estimated.
• B)the loss can be reasonably estimated, but the outcome is unknown.
• C)the outcome of the event is judged to be reasonably possible or the loss cannot be reasonably estimated.
• D)the outcome is unknown and the loss is reasonably estimable but the entity does not want to book the loss.

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Definitions:

Emotional Intelligence

The ability to recognize, understand, and manage one’s own emotions and the emotions of others.

Daniel Goleman

A psychologist known for popularizing the concept of Emotional Intelligence, which emphasizes the importance of self-awareness, self-regulation, motivation, empathy, and social skills.

Workplace

A location or environment where people are employed and engage in a range of tasks related to their job or profession.

Emotions

Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience.