Which of the Following Items Would Not Be Included If

question 173

Multiple Choice

Which of the following items would not be included if a contingent liability were disclosed in the financial statements?

• A) The nature of the item
• B) Management's expected outcome
• C) The amount of the contingency, if known
• D) A numerical probability of the expected loss

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Definitions:

Differential Costs

The change in total costs that results from choosing one alternative over another in decision-making processes.

Committed Fixed Cost

Long-term, fixed costs that a business incurs from entering into long-term contracts or having fixed assets, which are not easily altered in the short term.

Taxes On Real Estate

Levies imposed by government entities based on the assessed value of real estate property.

Indirect Manufacturing Cost

Costs related to the production process that cannot be directly traced to specific products, such as utilities or supervision, often referred to as manufacturing overhead.