Entity a Has Provided a Bank Guarantee to a Bank

question 30

Multiple Choice

Entity A has provided a bank guarantee to a bank in relation to a loan provided to entity B. Entity B is solvent and shows no signs of defaulting on the loan. The treatment of the bank guarantee in the records of entity A is to:

• A) recognise a liability
• B) recognise a provision
• C) recognise a contingent liability
• D) do nothing

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Definitions:

Pneumothorax

The presence of air or gas in the chest cavity that causes the lung to collapse, often resulting in breathing difficulties.

Nutritional Support Team

A group of healthcare professionals dedicated to providing dietary advice and interventions to support patients' nutritional needs.

Progressively Losing Weight

The gradual reduction of body weight over time, often due to diet, exercise, or health conditions.

Kidney Function

The various essential roles the kidneys play, including filtering waste from the blood and regulating fluid and electrolyte balance.