***The red answer is Incorrect*** .please explain the correct answer in detail

Return to question 00 The rules used for determining taxable income in various countries: 4 points Multiple Choice have an objective designed to provide a basis for funding government operations. X have the same objective as the rules used for determining income for financial reporting purposes. measure changes in a firm's underlying economic condition. are not the result of a political process. Return to question 12 Which one of the following contingencies must be accrued on the balance sheet? 4 points Multiple Choice The reasonably possible loss on a lawsuit that the firm's attorneys believe will be dropped. The likely loss on a lawsuit that the firm's attorneys believe will be dropped. x The reasonably possible loss on a lawsuit that the firm's attorneys believe will be settled for $50,000. The probable loss on a lawsuit that the firm's attorneys believe will be settled for $50,000. Return to question 17 Information found on a company's balance sheet can tell a story about: Dints Multiple Choice All of these can be derived from the information on the balance sheet. the company's performance. the company and its strategies. a the company's industry