With Regard to Reporting of Contingent Liabilities, U

question 62

Multiple Choice

With regard to reporting of contingent liabilities, U.S. GAAP and International Financial Reporting Standards (IFRS) differ in defining the term "probable". Which of the following is correct with regard to defining "probable"?

• A)Under U.S.GAAP, "probable" means an event is more likely than not to occur.
• B)Under IFRS, "probable" means an event is likely to occur.
• C)Under IFRS, "probable" means an event is more likely than not to occur.
• D)Under U.S.GAAP, "probable" means an event is more than likely to occur.

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Definitions:

Quality Control Variables

Variables that are monitored and controlled during a manufacturing or service process to ensure the quality of the output.

Continuous Measurement

A method of data collection that records the variability and full range of quantitative data points across a continuum.

Product Performance

An evaluation of how well a product meets specified criteria, fulfills its intended purpose, and satisfies customer expectations.