A Contingent Liability Is Recorded in the Accounting Records

question 14

Multiple Choice

A contingent liability is recorded in the accounting records

• A)if the contingency has not been described already in the notes to the financial statements.
• B)if it possibly will become an actual liability and the exact amount is known.
• C)under no circumstances.
• D)if it probably will become an actual liability and the amount can be reasonably estimated.

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Definitions:

Conscious Choice

The act of making decisions that are deliberately thought out, often reflecting a person's values and ethics.

Subconscious Selection

The process of making choices without conscious awareness, often influenced by deeper inner preferences or biases.

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, including about potential customers and competitors.

Relevant Information

Data or details that are directly related to the matter at hand or of interest to the decision-making process.