When a Gain Contingency Is Probable and the Amount of Gain

question 112

Multiple Choice

When a gain contingency is probable and the amount of gain can be reasonably estimated,the gain should be:

• A)Reported in the income statement and disclosed.
• B)Offset against stockholders' equity.
• C)Disclosed,but not recognized in the income statement.
• D)Reported in the income statement,but not disclosed.

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Definitions:

Risk-taking

The willingness to engage in actions that can lead to significant gains or losses, embracing the potential for failure as a path to success.

High Trust

A condition or environment in which individuals or parties have a strong belief in the reliability, integrity, and competence of each other.

Social Loafing

A phenomenon wherein people put forth less effort when they work in teams than when they work alone.

Supporting Evidence

Information or facts provided to support or validate a claim, theory, or argument.