Which of the Following Statements Regarding Contingencies Is True

question 136

Multiple Choice

Which of the following statements regarding contingencies is true?

• A)Contingencies that are probable and estimable must be recorded before the outcome of future events.
• B)Contingent assets,if probable and estimable,are treated in much the same way as contingent liabilities.
• C)The accounting principle that determines whether a contingent asset is recorded is that of materiality.
• D)Contingencies that are not estimable should not be disclosed even if probable.

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Definitions:

Effectiveness

The degree to which a specific intervention, procedure, regimen, or service produces a beneficial result under real-world conditions.

Beneficial Result

A positive outcome or advantage gained from a particular action, procedure, or intervention.

Scarce Resources

Resources that are limited in availability, meaning they cannot meet all the demands placed on them.

Consenting Individuals

Persons who have given permission for something, especially in a legal or formal context.