Which of the following circumstances would require a contingent liability to be recorded under generally accepted accounting principles?
A)The liability is probable and not estimable.
B)The liability is remote.
C)The liability is possible.
D)The liability is probable and estimable.

Question

Quizplus · Accepted Answer

When a potential liability is probable and the amount may be estimated,the estimated amount of the liability should be recorded (along with a corresponding loss to be reported on the income statement).

Which of the Following Circumstances Would Require a Contingent Liability