A Contingency That Is Remote

question 3

Multiple Choice

A contingency that is remote:

• A) should be disclosed in the financial statements.
• B) does not need to be disclosed.
• C) must be accrued as a loss.
• D) is recorded as a contingent liability.

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Definitions:

Lancet

A small, sharp medical instrument used for making incisions, especially for taking blood samples.

Radioallergosorbent Test

A blood test used to detect specific IgE antibodies to determine the substances a person is allergic to.

Antibodies

Proteins produced by the immune system in response to antigens, capable of specifically binding to and neutralizing foreign invaders such as bacteria and viruses.

Blood Serum

The clear, yellowish fluid part of blood that remains after clotting factors have been removed.