A contingency that is remote
A) should be disclosed in the financial statements.
B) must be accrued as a loss.
C) does not need to be disclosed.
D) is recorded as a contingent liability.

Question

Quizplus · Accepted Answer

Contingencies that are remote do not need to be disclosed in the financial statements as they are not likely to have a significant impact on the financial position of the company. They also do not need to be accrued as a loss or recorded as a contingent liability.

A Contingency That Is Remote