Which of the Following Is a Contingency That Should Be

question 141

Multiple Choice

Which of the following is a contingency that should be recorded?

• A)The company is being sued and a loss is reasonably possible and reasonably estimable.
• B)The company deducts life insurance premiums from employees' paychecks.
• C)The company offers a two-year warranty and the expenses can be reasonably estimated.

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Definitions:

Tour Boat

A boat designed specifically for taking tourists on sightseeing trips.

Performance Report

A document or tool that provides information on the performance of an entity, project, or process against expected standards or targets.

Jeep Tours

An outdoor activity business offering guided tours in jeep vehicles, typically in scenic or off-road areas.

Activity Variances

The differences between the planned amounts of costs based on standard cost rates and activities, and the actual incurred costs.