A potential lawsuit claim is disclosed when the claim can be reasonably estimated and it is reasonably possible.

Name: A potential lawsuit claim is disclosed when the claim can be reasonably estimated and it is reasonably possible.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A potential lawsuit claim is considered to be disclosed when it is both reasonably possible and the estimated amount can be determined with reasonable certainty. This information must be disclosed in a company's financial statements as a contingent liability.

A Potential Lawsuit Claim Is Disclosed When the Claim Can