Uncertainties Such as Natural Disasters That Could Happen in the Future

question 128

Multiple Choice

Uncertainties such as natural disasters that could happen in the future:

• A)Are not contingent liabilities because they are future events not arising out of past transactions or events.
• B)Are contingent liabilities because they are future events arising from past transactions or events.
• C)Should be disclosed because of their usefulness to financial statements.
• D)Are estimated liabilities because the amounts are uncertain.
• E)Arise out of transactions such as debt guarantees.

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