If management can estimate the amount of loss that will occur due to litigation against the company,and the likelihood of the loss is reasonably possible,a contingent liability should be
A)Disclosed,but not reported as a liability.
B)Disclosed and reported as a liability.
C)Neither disclosed nor reported as a liability.
D)Reported as a liability,but not disclosed.

Question

Quizplus · Accepted Answer

A contingent liability that is reasonably possible and can be estimated should be disclosed in the financial statements, but not reported as a liability on the balance sheet.

If Management Can Estimate the Amount of Loss That Will