Which of the Following Statements About Contingent Liabilities Is Incorrect

question 74

Multiple Choice

Which of the following statements about contingent liabilities is incorrect?

• A)A disclosure note is required when the loss is reasonably possible and the amount cannot be reasonably estimated.
• B)A disclosure note is required when the loss is probable and the amount can be reasonably estimated.
• C)A disclosure note is required when the loss is reasonably possible and the amount can be reasonably estimated.
• D)A disclosure note is required when the loss is remote and the amount can be reasonably estimated.

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Definitions:

Used Shotgun

A pre-owned firearm designed to shoot a number of small diameter pellets, which has been previously owned or utilized by someone else.

Breach of Contract

Breaching any terms and conditions that were mutually agreed upon in a legally enforceable agreement.

Time Limit

A specific duration within which a task must be completed or a condition must be met.