When the Amount of a Contingent Liability Can Be Estimated

question 22

Multiple Choice

When the amount of a contingent liability can be estimated and it is likely,the company should:

• A)include a description in the footnotes to the financial statements.
• B)record the estimated amount of the liability times the probability of its occurrence.
• C)record the liability and estimated amount of the loss on the balance sheet.
• D)omit the information about the contingent liability from its financial statements and footnotes.

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Definitions:

North American Culture

The customs, traditions, and values shared by the people living in North America, encompassing diverse societal norms.

Culture

The shared beliefs, values, norms, and practices that characterize a group of people or a society.

Business Associates

Individuals or entities that perform certain functions or activities involving the use or disclosure of protected health information on behalf of, or provides services to, a covered entity in a healthcare setting.

Verbal Message

Information conveyed through spoken words, as opposed to written or nonverbal means, in face-to-face or digital communication.