Which of the Following Statements Regarding Contingent Liabilities Is True

question 50

Multiple Choice

Which of the following statements regarding contingent liabilities is true?

• A)If they are probable and estimable, then they must be recorded even before the outcome of the future event.
• B)If they are probable and estimable, then they should be disclosed in the notes to the financial statements.
• C)The accounting principle that determines whether a contingent liability is to be recorded is that of Historical Cost.
• D)Contingencies that are not estimable should not be recorded or disclosed in the financial statements even if they are probable.

Understand the impact of representativeness and availability heuristics on judgment and decision-making.

Appreciate the necessity of overcoming functional fixedness to enhance problem-solving abilities.

Understand the concept and key aspects of intelligence, including its adaptive nature.

Identify and differentiate between various theories and models of intelligence (e.g., Gardner’s multiple intelligences, Sternberg’s triarchic theory).

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Definitions:

Efferent

Referring to nerve fibers that carry impulses away from the central nervous system to effectors (such as muscles or glands).

Afferent

Relating to or denoting nerve fibers that carry sensory information toward the central nervous system.

Central

Being at the most important or core position; of primary importance or relevance.

Sensory

Pertaining to the senses or sensation.