When the Amount of a Contingent Liability Can Be Estimated

question 22

Multiple Choice

When the amount of a contingent liability can be estimated and it is likely,the company should:

• A)include a description in the footnotes to the financial statements.
• B)record the estimated amount of the liability times the probability of its occurrence.
• C)record the liability and estimated amount of the loss on the balance sheet.
• D)omit the information about the contingent liability from its financial statements and footnotes.

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Definitions:

Sales Team

A group of individuals working together to sell products or services, achieving sales targets and goals.

Memorized Selling

A sales technique where the salesperson learns a scripted sales pitch by heart to ensure consistency and completeness in every sales situation.

Telemarketing

A marketing communication system using telecommunication technology and trained personnel to conduct planned, measurable marketing activities directed at targeted groups of consumers.

Door-To-Door

A direct selling method where salespeople visit potential customers at their homes to sell products or services.