A Certain Contingent Liability Was Evaluated at Year-End,and Considered to Have

question 38

Multiple Choice

A certain contingent liability was evaluated at year-end,and considered to have a reasonable possibility of becoming an actual liability.If the accountant decided NOT to report it on the balance sheet or in the notes to the financial statement,what effect would this have on the financial reporting of the company?

• A)The information about the transaction would be inadequately disclosed in the notes.
• B)The liabilities on the balance sheet would be understated.
• C)There would be no effect.
• D)The net profit of the company would be understated.

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The arrangement of elements on a page, screen, or workspace, including text, images, and controls, often designed to enhance readability and user experience.

Report Layout View

An interface in database software that allows users to see how a report will look when printed or viewed onscreen, facilitating real-time editing and layout adjustments.

Control Layout

The arrangement and organization of interactive elements such as buttons, sliders, and checkboxes within a software interface or web page to optimize user experience.

Form Views

Perspectives in database and form-building software that allow users to design, fill out, and see data through forms.