No disclosure in the financial statement is necessary if the contingent liability is:
A) Remote.
B) Probable.
C) Reasonably possible.
D) Has occurred.

Question

Quizplus · Accepted Answer

No disclosure is necessary if the contingent liability is remote, as it is unlikely to occur and will not have a significant impact on the financial statements. The other options (probable, reasonably possible, has occurred) would require disclosure or recognition in the financial statements.

No Disclosure in the Financial Statement Is Necessary If the Contingent