A Contingent Liability Should Be Disclosed in a Note to the Financial

question 68

Multiple Choice

A contingent liability should be disclosed in a note to the financial statements rather than being recorded if:

• A)The likelihood of a loss is remote.
• B)The incurrence of a loss is reasonably possible.
• C)The incurrence of a loss is probable.
• D)The likelihood of a loss is eighty percent.

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Definitions:

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A unique personal quality attributed to individuals that inspires devotion, enthusiasm, or affection in others, often associated with leadership.

Attractiveness

Attractiveness refers to the qualities that make a person or thing appealing or pleasing in appearance or other traits.

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An explanation for a word that has the same or nearly the same meaning as another word.

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In computer programming, it refers to the blueprint or template from which objects are created, describing the properties and behaviors of those objects.