A Basic Difference Between Loss Contingencies and "Real" Liabilities Is

question 72

Multiple Choice

A basic difference between loss contingencies and "real" liabilities is:

• A) Liabilities stem from past transactions; loss contingencies stem from future events.
• B) Liabilities always are recorded in the accounting records, whereas loss contingencies never are.
• C) The extent of uncertainty involved.
• D) Liabilities can be large in amount, whereas loss contingencies are immaterial.

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Definitions:

Controlling

The management function that involves monitoring performance, comparing it with goals, and correcting any significant deviations.

Controlling

The process of monitoring and evaluating performance to ensure that organizational goals are being met and making adjustments as necessary.

Surpasses Objectives

Exceeding set goals or targets within a given timeframe or project scope.

Feedforward Control

A management technique that focuses on the regulation of future actions based on current performance trends and forecasts to prevent problems before they arise.