Under What Condition Should a Pending Lawsuit Be Recognized as a Liability

question 74

Multiple Choice

Under what condition should a pending lawsuit be recognized as a liability on a company's balance sheet?

• A)The amount can be reasonably estimated.
• B)The outcome is probable.
• C)The outcome is reasonably possible.
• D)The outcome is probable and can be reasonably estimated.

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Definitions:

Acute Dystonic Reaction

A rapid onset of muscle contractions that can lead to involuntary twisting movements or abnormal postures.

Drooling

The unintentional spillage of saliva from the mouth, which can be due to various medical conditions or developmental stages.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of antipsychotic medication.

Fluphenazine Decanoate

A long-acting antipsychotic medication used in the treatment of schizophrenia and other psychotic disorders.