Multiple Choice
Ultimate Company is a defendant in a lawsuit alleging damages of $3 billion. The litigation is expected to continue for several years, and no reasonable estimate can be made at this time of Ultimate Company's ultimate financial responsibility. This situation is an example of:
A) Off-balance-sheet financing.
B) A contingent liability which should be disclosed in notes to Ultimate Company's financial statements.
C) A provision which must appear in Ultimate Company's statement of financial position.
D) A loss in purchasing power caused by inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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