In some countries the account Reserve for Contingencies may be most comparable to which of the following accounts for a company reporting under U.S.GAAP?
A) Contingency Expense
B) Retained Earnings Appropriated for Contingencies
C) Unearned Contingency Fees
D) Contingency Losses

Question

Quizplus · Accepted Answer

Reserve for Contingencies is similar to Retained Earnings Appropriated for Contingencies, as both are used to set aside a portion of earnings for potential future losses or liabilities. The other options do not accurately represent the purpose or nature of Reserve for Contingencies.

In Some Countries the Account Reserve for Contingencies May Be