Unless the Probability of Any Outflow in a Settlement Is

question 41

Multiple Choice

Unless the probability of any outflow in a settlement is remote,an entity needs to disclose for each class of contingent liability:

• A) the possibility of any reimbursement.
• B) an indication of the timing and amount uncertainties.
• C) an estimate of its financial effect.
• D) All of the given answers must be disclosed.

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Definitions:

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Effective

Producing the desired result or effect with efficiency.

IM

Short for Instant Messaging, a method of sending real-time messages over the internet between two or more people.

User Authentication

A security process that verifies the identity of a user before granting access to a system or application.