According to FASB,when Should a Company Journalize a Contingent Liability

question 51

Multiple Choice

According to FASB,when should a company journalize a contingent liability?

• A)Journalize the contingent liability,even though you will probably win the lawsuit.
• B)Journalize the contingent liability only if the amount can be estimated and the probability of loss is reasonably possible.
• C)Journalize the contingent liability if it is probable that the loss will occur,and the amount of the loss can be reasonably estimated.
• D)Do not journalize the contingent liability under any circumstances.

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Definitions:

Acid-Base Status

The balance between acids and bases in the blood, crucial for maintaining vital bodily functions and metabolism.

Intravenous Fluid

Liquids given directly into a vein through an IV to provide hydration, nutrients, or medication to patients.

Nasogastric Tube

A medical device inserted through the nose and into the stomach for feeding or removing contents from the stomach.

Tube Drainage

A medical procedure that involves the insertion of a tube into the body to remove fluids or air from a cavity or wound.