If a Potential Loss on a Contingent Liability Is Remote

question 88

Multiple Choice

If a potential loss on a contingent liability is remote, the liability usually is

• A) disclosed in footnotes, but not accrued.
• B) neither accrued nor disclosed in footnotes.
• C) accrued and indicated in the body of the financial statements.
• D) disclosed in the auditor's report but not disclosed on the financial statements.

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Definitions:

Power Triangle

A graphical representation in electrical engineering that shows the relationship between real power, reactive power, and apparent power in an AC circuit.

Power Factor

A dimensionless number representing the ratio of real power flowing to the load to the apparent power in the circuit, indicating efficiency in electrical systems.

Energy

The ability to do work, which can be transferred between objects and converted into different forms, such as electrical, thermal, or mechanical.

Pull-up Torque

The minimum torque generated by an electric motor during the acceleration from standstill to the speed where torque is maximum.