When Are Contingent Liabilities Recorded

question 146

Multiple Choice

When are contingent liabilities recorded?

• A) If they are probable and estimable, they must be recorded even before the outcome of the future event.
• B) If they are probable and estimable, they should be disclosed in the notes to the financial statements.
• C) The accounting principle that determines whether a contingent liability is to be recorded is that of historical cost.
• D) Contingencies that are not estimable should not be recorded or disclosed in the financial statements even if they are probable.

Grasp the reasons behind the United States' entry into World War I.

Learn about the major effects of WWI on domestic and international politics.

Recognize the impact of World War I on American society, including shifts in labor, migration, and the role of women.

Comprehend President Wilson's foreign policy and ideological beliefs, such as Wilsonianism.

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Definitions:

Real Defense

In negotiable-instruments law, any defense that can be used against everyone, including holders in due course. Also called absolute defense and universal defense.

Duress

An action by one party that forces another party to do what need not be done otherwise.

Personal Defense

In negotiable-instruments law, a defense that can be used against a holder but not against a holder in due course of a negotiable instrument. Also called limited defense.

Payment

The transfer of money or goods from one person or entity to another in exchange for goods, services, or to fulfill a legal obligation.