If Management Can Estimate the Amount of Loss That Will

question 106

Multiple Choice

If management can estimate the amount of loss that will occur due to litigation against the company,and the likelihood of the loss is probable,a contingent liability should be

• A)Disclosed,but not reported as a liability.
• B)Disclosed and reported as a liability.
• C)Neither disclosed nor reported as a liability.
• D)Reported as a liability,but not disclosed.

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Definitions:

Social Frameworks

Structures that provide guidelines for behavior and interactions within social groups, including norms, roles, and institutions.

Group Decisions

The process by which two or more individuals agree upon a decision within a group setting, often requiring negotiation and compromise.

Consequential Theories

Ethical theories that determine the rightness or wrongness of actions based on their outcomes or results.

Rule-based Theories

Philosophical theories that emphasize the importance of following structured, predefined rules or guidelines to determine moral conduct or decision-making processes.