Uncertainties Such as Natural Disasters Are

question 5

Multiple Choice

Uncertainties such as natural disasters are:

• A) Disclosed because of their usefulness to financial statements.
• B) Contingent liabilities because they are future events arising from past transactions or events.
• C) Estimated liabilities because the amounts are uncertain.
• D) Not contingent liabilities because they are future events not arising from past transactions or events.
• E) Reported in the same way as debt guarantees.

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Definitions:

Late Charges

Additional fees charged to a borrower for failing to make payments on time.

Time Of Essence

A contractual clause declaring that specific timelines and deadlines are crucial to the contract, with any delay constituting a breach.

Election Day

A designated day on which voters cast ballots to elect public officials or to decide on other political or legal questions.

Delivery

The process of transferring an item from the seller to the buyer, or the act of fulfilling a contractual obligation or transferring ownership.