Which of the Following Is the Proper Treatment for a Contingency

question 78

Multiple Choice

Which of the following is the proper treatment for a contingency that is probable but the exact amount of which is not known? The amount can be estimated.

• A) The liability should be doubled following conservatism.
• B) The liability should be estimated and recorded.
• C) The liability should be ignored.
• D) The liability should be reported in the notes to the financial statements.

Understand how managerial accounting supports decision-making across different forms of business organizations.

Recognize how the balanced scorecard approach and supply chain management contribute to strategic planning and operational efficiency.

Understand the factors influencing the likelihood of bystander intervention in emergency situations.

Examine the impact of social norms and bystander effect on individual actions in group settings.