A Contingent Loss Should Be Reported in a Disclosure Note

question 71

Multiple Choice

A contingent loss should be reported in a disclosure note to the financial statements rather than being accrued 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 more likely than not.
• D) The likelihood of a loss is probable.

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Definitions:

Bleach Solution

A diluted mixture of water and bleach commonly used for disinfection and cleaning purposes.

Personal Protective Equipment (PPE)

Equipment worn to minimize exposure to hazards that cause serious workplace injuries and illnesses.

Reservoirs for Pathogens

Environments or hosts that maintain and allow the transmission of disease-causing organisms.

Immunizations

The process by which a person becomes protected against a disease through vaccination.