A Company Has a Probable Contingent Gain That Can Be

question 154

Multiple Choice

A company has a probable contingent gain that can be reasonably estimated. What reporting does the FASB require regarding this contingency?

• A)It should be ignored until the actual gain materializes.
• B)It should either be recorded on the financial statements or reported in the notes to the financial statements.
• C)It should be accrued and reported in the financial statements.
• D)It should be reported in the notes to the financial statements.

---

Definitions:

SharePoint Site

A collection of web pages, lists, libraries, and other elements or features hosted on a SharePoint platform, used for shared or collaborative purposes.

XML File

A file format used to store data in a structured text format with custom tags, facilitating data exchange.

Extensible Markup Language

A flexible text format for creating structured documents and data, enabling the sharing of information across different systems.

Tags

A keyword or term assigned to a piece of information to help describe an item and allows it to be found again by browsing or searching.