A Contingent Liability Should Be Shown by Way of a Note

question 2

Multiple Choice

A contingent liability should be shown by way of a note to the accounts when:

• A) there is significant uncertainty as to whether a sacrifice of future economic benefits will be required.
• B) the amount of the obligation cannot be measured reliably.
• C) estimation procedures were necessary to determine its amount.
• D) there is significant uncertainty as to whether a sacrifice of future economic benefits will be required and the amount of the obligation cannot be measured reliably.

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Definitions:

Crafts Activity

Creative activities involving the making of decorative or functional items by hand.

Performance Portion

The segment or part of an evaluation or assessment that measures the actual execution or demonstration of skills and knowledge.

Curfew

A regulation or order specifying a time by which individuals must remain indoors, typically enforced by authorities to maintain public order.

Weeknights

The evenings of the weekdays, typically from Monday to Friday, considered as a timeframe for routine activities.