Question
How a company records or doesn't record a contingent liability is based on one of which three likelihoods that an event will take place in the future?
Question content area bottom
Part 1
A.
unlikely, reasonably possible, and probable
B.
remote, reasonably possible, and probable
C.
remote, reasonably possible, and certain
D.
unlikely, reasonably possible, and certain
Question content area bottom
Part 1
A.
unlikely, reasonably possible, and probable
B.
remote, reasonably possible, and probable
C.
remote, reasonably possible, and certain
D.
unlikely, reasonably possible, and certain
Answers
There are no human answers yet.
Answered by
GPT-4o mini
The correct answer is:
**A. unlikely, reasonably possible, and probable**
A company evaluates contingent liabilities based on the likelihood of the occurrence of future events and classifies them into these three categories to determine whether to record the liability in the financial statements or not.
**A. unlikely, reasonably possible, and probable**
A company evaluates contingent liabilities based on the likelihood of the occurrence of future events and classifies them into these three categories to determine whether to record the liability in the financial statements or not.
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