When a Company Encounters a Contingent Liability That Is Remote

question 14

Multiple Choice

When a company encounters a contingent liability that is remote in likelihood,the company should:

• A)include a description in the foot notes to the financial statements.
• B)record the 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.

Recognize the characteristics and limitations of preoperational thinking, including animism, static reasoning, and centration.

Identify the concept of conservation and its challenges for preoperational children.

Explain the role of the amygdala in emotional responses and its developmental implications in early childhood.

Understand Vygotsky's theories on scaffolding and the zone of proximal development in the cognitive development of children.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.

Journal Entry

A record in the books of accounts that represents a business transaction, including the accounts and amounts to be debited and credited.

Dividend Yield Ratio

A business ratio reflecting the amount a firm disburses in dividends annually compared to the price of its shares.