Which of the following are generally recorded as liabilities on the balance sheet?
A)Remote likelihood liabilities.
B)Possible contingent liabilities.
C)Probable contingent liabilities.
D)Immaterial contingent liabilities.

Question

Quizplus · Accepted Answer

Probable contingent liabilities are generally recorded as liabilities on the balance sheet as they are likely to occur and the amount can be estimated. Remote likelihood liabilities, possible contingent liabilities, and immaterial contingent liabilities are not recorded on the balance sheet as they are either too uncertain or not significant enough to warrant recording.

Which of the Following Are Generally Recorded as Liabilities on the Balance