Multiple Choice
Which of the following scenarios regarding a lawsuit filed against a client by a third party would qualify as a "contingent liability"?
A) A lawsuit has been filed but not yet resolved.
B) A lawsuit was filed and concluded with the client winning.
C) A lawsuit was filed and concluded with a third party winning an award of $100 000,but the client hasn't paid yet.
D) A lawsuit was filed and concluded with a third party winning an award of $100 000,which the client paid after the balance sheet date but before the statements were issued.
Correct Answer:
Verified
Correct Answer:
Verified
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