If Management Can Estimate the Amount of Loss That Will

question 8

Multiple Choice

If management can estimate the amount of loss that will occur due to litigation against the company,and the likelihood of the loss is probable,a contingent liability should be

• A)Disclosed,but not reported as a liability.
• B)Disclosed and reported as a liability.
• C)Neither disclosed nor reported as a liability.

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Definitions:

Egocentrism

A cognitive bias where an individual is unable to see a situation from another person’s point of view, common in early childhood development.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

Conservation

Conservation in cognitive psychology relates to the understanding that certain properties of objects, like volume or number, remain the same despite changes in their form or appearance.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a concept developed in infancy.