When a Material Gain Contingency Is Probable and the Amount

question 60

Multiple Choice

When a material 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 shareholders' equity.
• C) Disclosed but not recognized in the income statement.
• D) Neither recognized in the income statement nor disclosed.

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Definitions:

Human Interaction

The communication and relationships between people, whether in person or through digital means.

Output Control

Control that focuses on profitability and/or market share.

Profitability

The degree to which a business or activity yields profit or financial gain.

Market Share

refers to the percentage of a market (defined in terms of either value or volume) controlled by a particular company, product, or brand.