If a Potential Loss on a Contingent Liability Is Remote

question 88

Multiple Choice

If a potential loss on a contingent liability is remote, the liability usually is

• A) disclosed in footnotes, but not accrued.
• B) neither accrued nor disclosed in footnotes.
• C) accrued and indicated in the body of the financial statements.
• D) disclosed in the auditor's report but not disclosed on the financial statements.

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Definitions:

Socially Responsible

A commitment to act ethically and contribute to economic development while improving the quality of life of the workforce, their families, and the community at large.

Ethical Responsibility

a principle that individuals and organizations are expected to behave in a manner that considers the moral implications of their actions.

External Regulations

Rules and standards imposed by external entities, such as governments and regulatory bodies, that organizations are required to follow.

Legal Responsibility

The obligation to act in accordance with the law, facing consequences for failure to comply with legal standards and regulations.