Which of the Following Contingencies Should Be Accrued in the Accounts

question 23

Multiple Choice

Which of the following contingencies should be accrued in the accounts and reported in the financial statements?

• A) The company is forcefully contesting a personal injury lawsuit and a loss is possible and reasonable estimable.
• B) An accommodation endorsement involving a remote loss
• C) It is probable that a company will receive $50,000 in settlement of a lawsuit.
• D) The estimated expenses of a one-year product warranty.

---

Definitions:

Assimilated

The process of adapting or becoming absorbed into a different culture or group.

Hispanic Subculture

A group within the larger Hispanic community with its own unique customs, values, and traditions, influenced by specific national origins or cultural backgrounds.

Marketing Challenge

Any obstacle that a marketing team encounters in the process of reaching its objectives, such as competition, market saturation, or changing consumer preferences.

Credible Source

A reliable and trustworthy origin of information or reference material.