Which of the following is an example of a disclosure of information NOT recognized that would be explained in the notes to the financial statements?

Question

Quizplus · Accepted Answer

The disclosure of an uncertain, potential outcome of a lawsuit is considered a contingent liability and is disclosed in the notes to the financial statements. It is not recognized as a liability on the balance sheet unless it is probable that there will be a loss and the amount of the loss can be reasonably estimated. Choices A, B, and C are all recognized and disclosed in the financial statements themselves.

Which of the Following Is an Example of a Disclosure