Which of the Following Is the Proper Treatment for a Liability

question 32

Multiple Choice

Which of the following is the proper treatment for a liability that exists,but the exact amount of which is not known?

• A) The liability should be treated as a contingent liability.
• B) The amount of the liability should be estimated and recorded.
• C) The liability should be ignored.
• D) The liability should be reported in the notes to the financial statements.

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Definitions:

College Registrar

An official in a college or university who is responsible for maintaining student records, including enrollment, class schedules, and grades.

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Correctly Punctuated

Text that utilizes proper punctuation marks according to grammatical rules, ensuring clarity and readability.

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Colorful wax sticks used for drawing and coloring.