Which of the Following Statements Regarding Contingencies Is True

question 72

Multiple Choice

Which of the following statements regarding contingencies is true?

• A)Contingencies that are probable and not estimable appear on the balance sheet.
• B)Contingencies that are probable and not estimable are disclosed in the notes to the financial statements.
• C)Contingencies that are remote but estimable are disclosed in the notes to the financial statements.
• D)Contingent assets are recorded on the balance sheet,but not in the notes to the financial statements.

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Definitions:

Employment Status

A legal classification that defines the nature of a person's professional engagement with an organization, including full-time, part-time, contractor, or temporary.

Turning Down Promotions

The act of rejecting an offer to advance to a higher position or rank within an organization.

Developmental

Relating to the process of growth and change, often used in the context of psychological, physical, or societal progress.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences through study, experience, or teaching.