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 The financial statement reporting "filter" is D Multiple Choice SEC reporting regulations that vary from GAAP for publicly traded companies. SEC required reporting regulations for all entities. management's distortion of accounting data. management's discretion to choose alternative accounting procedures within GAAP Sales Cost of goods sold Operating expenses Operating income 20x3 $178,400 115,000 50,000 13,400 20X2 $162,500 102,500 50,000 10,000 20x1 $155,500 100,000 45,000 10,500 In a common-size income statement for 20X3, the operating expenses are expressed as Multiple Choice 28.0% 30.3% 43.8% 100.0% no