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

question 149

Multiple Choice

A certain contingent liability was evaluated at year-end,and considered to have a remote 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) There would be no effect.
• B) The liabilities on the balance sheet would be understated.
• C) The information about the transaction would be inadequately disclosed in the notes.
• D) The net income of the company would be understated.

Understand the concept of telepresence and its comparative advantages and disadvantages.

Recognize strategies to handle information overload and maintain efficient communication.

Distinguish between positive and informative messages and their strategic purposes in business communication.

Determine the appropriate communication mode based on the context, urgency, and content of the message.

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Definitions:

Flexibility

The ability of an organization or individual to adapt to changes, challenges, or new requirements with ease.

Large-scale Success

Achievements or outcomes that have significant positive impact or reach on a broad scale.

Wealthy Investors

Individuals or entities with a significant amount of capital or assets available to invest, often seeking to grow their wealth through strategic investment opportunities.

Corporate Form

A business structure recognized by law as a separate legal entity from its owners, allowing it to own property, enter contracts, and incur liabilities.