Potential events that could create negative financial results for a company,which are required to be recorded when the event is both probable and reasonably estimated in terms of its monetary effects,are referred to as:

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Contingent liabilities are potential events that could result in negative financial outcomes for a company, such as lawsuits or product recalls. They must be recorded when it is probable that the event will occur and the monetary impact can be reasonably estimated. This is done to ensure that the company's financial statements accurately reflect the potential risks and liabilities that it faces. Deferred charges refer to expenses that have been prepaid but have not yet been used or consumed, while cumulative effects and prior period adjustments are accounting terms used to describe specific types of financial reporting adjustments.

Potential Events That Could Create Negative Financial Results for a Company,which