A Contingent Liability Is Recorded in the Accounting Records

question 57

Multiple Choice

A contingent liability is recorded in the accounting records

• A) if the contingency has not been described already in the notes to the financial statements.
• B) if it probably will become an actual liability and the exact amount is known.
• C) under all circumstances.
• D) if it probably will become an actual liability and the amount can be reasonably estimated.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives.

Design For Disassembly

Creating products in such a way that they can be easily taken apart at the end of their life cycle, facilitating recycling or reuse of components.

Working Life

The period during which a person participates in the workforce, engaging in paid employment or professional activities.

Recycled

The process of converting waste materials into new materials and objects, aimed at reducing consumption of fresh raw materials and energy usage.