A Company Has a Probable Contingent Gain That Can Be

question 87

Multiple Choice

A company has a probable contingent gain that can be reasonably estimated. What reporting does the FASB require regarding this contingency?

• A) It should be reported in the notes to the financial statements.
• B) It should be ignored until the actual gain materializes.
• C) It should either be reported in the notes to the financial statements or recorded on the financial statements.
• D) It should be accrued and reported in the financial statements.

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Definitions:

Domestic Output

The total value of all goods and services produced within a country's borders in a specified time period.

Occupations

The various kinds of jobs or professions that individuals engage in to earn a living.

Crowding Model

A theory in public economics that describes how public sector investments can lead to a displacement of private sector activity, especially in cases of finite resources.

High-Paying Occupations

Jobs that offer wages significantly above the average for all occupations.