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Which of the following scenarios regarding a lawsuit filed against a client by a third party would ...

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Which of the following scenarios regarding a lawsuit filed against a client by a third party would ...

Which of the following scenarios regarding a lawsuit filed against a client by a third party would qualify as a "contingent liability"? A lawsuit has been filed
A) but not yet resolved.
B) and concluded with the client winning.
C) and concluded with a third party winning an award of $100,000, but the client hasn't paid yet.
D) 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 are issued.

Textbook

Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

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inthe80s

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