Which statement is not correct?
A)Contingencies arise from past events.
B)Financial guarantees arise from contracts previously entered into.
C)The amount to be paid for financial guarantees is known or reasonably estimable.
D)The amount to be paid for current liabilities is known or reasonably estimable.

Question

Quizplus · Accepted Answer

The statement that the amount to be paid for financial guarantees is known or reasonably estimable is not always correct. Financial guarantees can involve significant uncertainty regarding the amount that might need to be paid, as they depend on whether a specific event occurs that triggers the guarantee.

Which Statement Is Not Correct