Uncertainties Such as Natural Disasters That Could Happen in the Future

question 128

Multiple Choice

Uncertainties such as natural disasters that could happen in the future:

• A)Are not contingent liabilities because they are future events not arising out of past transactions or events.
• B)Are contingent liabilities because they are future events arising from past transactions or events.
• C)Should be disclosed because of their usefulness to financial statements.
• D)Are estimated liabilities because the amounts are uncertain.
• E)Arise out of transactions such as debt guarantees.

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Definitions:

Primary Cause

The main or leading reason behind an event or situation.

Align Worker Interests

The process or strategy of ensuring that the objectives and concerns of workers align with those of their representatives, such as unions or labor organizations.

Employer

An individual or organization that hires and pays people to work for them, providing salary or wages in exchange for the employee's labor.

Human Resource Management

The strategic approach to the effective management of people in an organization, which helps businesses gain a competitive advantage. It's designed to maximize employee performance in service of the employer's strategic objectives.