Gain contingencies
A)should be accrued when probable and the amount can be reasonably estimated.
B)are reported as revenues on the income statement.
C)should be accrued for anticipated lottery winnings.
D)are almost never accrued and are rarely disclosed.

Question

Quizplus · Accepted Answer

Gain contingencies are not recognized in financial statements until they are realized or realizable, due to the conservatism principle in accounting. This means they are almost never accrued and are rarely disclosed to avoid overstating potential income.

Gain Contingencies