Which Statement About Contingencies Is Correct

question 38

Multiple Choice

Which statement about contingencies is correct?

• A)If the future outcome is remote but reliably measurable,a provision is recorded.
• B)If the future outcome is remote,but not reliably measurable,disclosure is required.
• C)If the future outcome is remote,but not reliably measurable,no action is required.
• D)If the future outcome is remote,but reliably measurable,disclosure is required.

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Definitions:

Cashier's Check

A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Draft

A preliminary version of a piece of writing, document, or legislation that is subject to further revision and editing.

Drawer

The party that writes and signs a check, directing a bank to pay the check's amount to the person or entity named as the payee.

Drawee

The party on whom a check or draft is drawn, and who is expected to pay the amount specified.