Which of the Following Is the Proper Treatment for a Liability

question 50

Multiple Choice

Which of the following is the proper treatment for a liability that exists,but the exact amount of which is not known? Assume the probability of loss is probable and the amount of the loss can be estimated.

• A)The liability should be doubled following conservatism.
• B)The liability should be estimated and recorded.
• C)The liability should be ignored.
• D)The liability should be reported in the notes to the financial statements.

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Definitions:

Reproduction

The biological process by which new individual organisms are produced, either sexually from two parents or asexually from one parent.

Refractory Period

The time period following an action potential during which a neuron is incapable of firing another action potential or its threshold for firing is significantly increased.

Female Orgasm

A peak of sexual pleasure in women, accompanied by a series of involuntary contractions of the pelvic muscles.

Male

A biological sex that in many species, including humans, is typically characterized by the production of small, mobile gametes called sperm.