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If a Potential Loss on a Contingent Liability Is Remote

Question 3

Multiple Choice

If a potential loss on a contingent liability is remote, the liability usually is


A) disclosed in footnotes, but not accrued.
B) neither accrued nor disclosed in footnotes.
C) accrued and indicated in the body of the financial statements.
D) disclosed in the auditor's report but not disclosed on the financial statements.

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