In Accounting for a Contingent Liability, If the Likelihood of the Obligation

question 3

Multiple Choice

In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a company must

• A) recognize the liability and report it on the balance sheet.
• B) provide disclosure in the footnotes to the financial statements.
• C) not recognize or disclose the liability until it is certain and the exact amount is known.
• D) do nothing.

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Definitions:

Personal Needs

pertain to the essential or very important requirements or desires of individuals that contribute to their well-being.

Self-managing Teams

Groups within an organization that operate without direct supervision, taking responsibility for their decisions, processes, and outcomes.

Team Members

Individuals who are part of a group working together towards a common goal or objective.

Virtual Team

A group of individuals who work together from different geographical locations using technology to communicate and collaborate.