A Contingent Loss Should Be Reported in a Disclosure Note

question 71

Multiple Choice

A contingent loss should be reported in a disclosure note to the financial statements rather than being accrued if:

• A) The likelihood of a loss is remote.
• B) The incurrence of a loss is reasonably possible.
• C) The incurrence of a loss is more likely than not.
• D) The likelihood of a loss is probable.

---

Definitions:

Long-Term Purpose

The overarching goal or mission that guides an individual's or organization's actions over an extended period.

Blog

A web-based diary that can be easily updated; abbreviated as a weblog.

Podcast

A digital audio or video file series that can be streamed or downloaded for listening or viewing.

Existing Organization

An established entity or group, particularly in the context of businesses or institutions that are already operational.