A Contingent Liability Is Recorded in the Accounting Records

question 14

Multiple Choice

A contingent liability is recorded in the accounting records

• A)if the contingency has not been described already in the notes to the financial statements.
• B)if it possibly will become an actual liability and the exact amount is known.
• C)under no circumstances.
• D)if it probably will become an actual liability and the amount can be reasonably estimated.

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Definitions:

Production Employees

Workers directly involved in the manufacturing or creation of products within an organization.

Important Conditions

Refers to the essential or significant aspects that affect or determine outcomes in a specific context.

Work Site Design

The planning and layout of a physical workplace to optimize worker efficiency, safety, and comfort.

Secretarial Pool

A group or cluster of administrative personnel available to work for various executives or departments as needed, often shared among multiple managers.