Contingent Gains Need Not Be Disclosed in the Financial Statements

question 80

Multiple Choice

Contingent gains need not be disclosed in the financial statements or the notes thereto if they are considered ________.

• A)reasonably probable
• B)virtually certain
• C)possible but not probable
• D)more likely than not

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Definitions:

Tractor Protection Valve (TP)

A safety device on tractor-trailer combinations that protects the air brake system from losing air pressure in the event of a trailer breakaway or leak.

Pneumatic Circuits

Systems designed to use compressed air to power moving parts and machinery, using valves, tanks, and pipelines to control the flow and pressure.

FMVSS-121

Federal Motor Vehicle Safety Standards 121, which sets the requirements for air brake systems in heavy-duty vehicles to ensure safety through proper functionality and performance.