Which Statement About Contingencies Is Correct

question 48

Multiple Choice

Which statement about contingencies is correct?

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

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Definitions:

Pure Monopoly

A market structure where a single firm controls the entire market supply of a product or service, with no close substitutes available, enabling price setting power.

Entry of New Firms

The process by which new companies can enter an industry, often affecting competition levels, market share, and innovation.

Standardized Product

Goods or services that are uniform in quality and performance, making them interchangeable with similar products from different producers.

Pure Competition

A market structure characterized by an extremely large number of sellers, none of whom can control market prices or product quality, leading to a situation where products are homogeneous and businesses have no control over pricing.