When a gain contingency is probable and the amount of gain can be reasonably estimated,the gain should be:
A)Reported in the income statement and disclosed.
B)Offset against stockholders' equity.
C)Disclosed,but not recognized in the income statement.
D)Reported in the income statement,but not disclosed.

Question

Quizplus · Accepted Answer

According to accounting principles, gain contingencies that are probable and can be reasonably estimated should be disclosed in the financial statements but not recognized in the income statement until they are realized.

When a Gain Contingency Is Probable and the Amount of Gain