Uncertainties Such as Natural Disasters

question 118

Multiple Choice

Uncertainties such as natural disasters:

• A) Are not contingent liabilities because they are future events not arising from past transactions or events.
• B) Are contingent liabilities because they are future events arising from past transactions or events.
• C) Should be disclosed because of their usefulness to financial statements.
• D) Are estimated liabilities because the amounts are uncertain.
• E) Arise out of transactions such as debt guarantees.

---

Definitions:

Interactional Skills

Abilities used to effectively communicate, engage, and interact with others, including verbal and non-verbal communication.

Psychoanalysis

A therapeutic approach developed by Freud aiming at uncovering unconscious thoughts and motivations through techniques like dream interpretation and free association.

Free Association

A psychoanalytic therapy technique where patients express their thoughts freely, revealing unconscious thoughts and feelings.