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

---

Definitions:

Highly Elastic

Describes a situation where demand for a product is highly sensitive to changes in price, leading to significant changes in quantity demanded.

Highly Inelastic

A situation in which demand or supply changes very little in response to large changes in price, often applicable to essential or unique goods and services.

Herfindahl Index

An economic indicator used to measure the size of companies in relation to the industry and the level of competition among them.