Contingent liabilities must be recorded if:
A)the future event is reasonably possible.
B)the amount owed cannot be reasonably estimated.
C)the future event is probable and the amount owed can be reasonably estimated.
D)the future event is remote.

Question

Quizplus · Accepted Answer

Contingent liabilities must be recorded if the future event is probable and the amount owed can be reasonably estimated. If the future event is only reasonably possible, disclosure in the financial statement notes is required. If the amount owed cannot be reasonably estimated or the future event is remote, no recording or disclosure is necessary.

Contingent Liabilities Must Be Recorded If