Which of the Following Statements Is True

question 78

Multiple Choice

Which of the following statements is true?

• A)No loss contingencies should be disclosed if there is just a reasonable possibility of a loss.
• B)Indirect guarantees should normally be accrued.
• C)In the case of loss contingencies, accrual can be made even if the exact payee and payment date are not known.
• D)Losses may be accrued for unasserted claims and other potential unfiled lawsuits.

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Definitions:

Plan of Action

A detailed strategy outlining steps needed to achieve a goal or complete a project.

Medications Prescribed

Drugs or medicine that are formally authorized by a medical professional for a patient to use in treatment.

Tests

Procedures or examinations conducted to determine the presence, quality, or truth of a particular substance, condition, or phenomenon.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.