1 A contingent liability requires that the related event that may give rise to a future loss relates to a

Multiple Choice

• past event.

• future event.

• certain event.

• potential event.

2 Under U.S. GAAP, contingent gains are not recognized until certain. This is most consistent with the principle or concept of:

Multiple Choice

• Matching

• Relevance

• Consistency

• Conservatism