3. An appropriation of accumulated profits for possible contingencies should be a. Charged with all losses related to that contingency b. Transferred to income as losses are realized c. Shown within shareholders’ equity in the statement of financial position d. Classified in the liability section of the statement of financial position
3. An appropriation of accumulated profits for possible contingencies should be a. Charged with all losses related to that contingency b. Transferred to income as losses are realized c. Shown within shareholders’ equity in the statement of financial position d. Classified in the liability section of the statement of financial position
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. An appropriation of accumulated profits for possible contingencies should be
a. Charged with all losses related to that contingency
b. Transferred to income as losses are realized
c. Shown within shareholders’ equity in the
d. Classified in the liability section of the statement of financial position
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