Which of the Following Is Correct with Respect to a Contingent

question 42

Multiple Choice

Which of the following is correct with respect to a contingent liability that is "reasonably possible" but "cannot reasonably be estimated"?

• A)It must be recorded and reported as a liability.
• B)It does not need to be recorded or reported as a liability.
• C)It must only be disclosed as a note to the financial statements.
• D)It must be reported as a liability,but not recorded.

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Definitions:

Test-Taking Ability

The capacity or skillset that enables an individual to perform effectively in examinations.

Verbal Skills

The ability to convey ideas and feelings through spoken language, including vocabulary usage, clarity of speech, and storytelling.

Gender Differences

Variations in the characteristics, behaviors, and roles associated with being male or female in a particular culture or society.

Mental Abilities

The capacity to perform cognitive tasks and processes that involve thinking, perceiving, and understanding.