A contingent liability is recorded only if a loss is at least reasonably possible and the amount can be reasonably estimated.

Name: A contingent liability is recorded only if a loss is at least reasonably possible and the amount can be reasonably estimated.
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Quizplus · Accepted Answer

A contingent liability is recorded if a loss is probable and the amount can be reasonably estimated. If it is only reasonably possible, it is disclosed in the notes to the financial statements, not recorded.

A Contingent Liability Is Recorded Only If a Loss Is