Which One of the Following Is a Contingent Loss That

question 24

Multiple Choice

Which one of the following is a contingent loss that is required to be disclosed only in a note to the financial statements?

• A) A loss that is reasonably possible and the amount can be reasonably determined.
• B) A loss that probably will never materialize, and the amount cannot be reasonably estimated.
• C) A probable loss of a known amount.
• D) A probable loss of a reasonably estimated amount.

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Definitions:

Range of Output

The spectrum of quantity of goods or services produced, from minimum to maximum, that a company or an economy can achieve.

Mixers

Devices or substances used in the preparation of alcoholic beverages to add flavor or dilute strength, such as soda, juice, or tonic.

Average Total Cost

A financial metric that represents the total cost of production (fixed and variable costs) divided by the total quantity of output produced, indicating the cost per unit of output.

Mixers

Devices or software used for blending or merging audio or other elements together; also refers to non-alcoholic beverages mixed with alcohol in drinks.