Cress Company is involved in a lawsuit. Note disclosure of the contingent liability which could arise does NOT have to be presented if the probability of Cress owing money as a result of the lawsuit is which of the following?
A) Reasonably possible and the amount cannot be reasonably estimated.
B) Probable and the amount cannot be reasonably estimated.
C) Reasonably possible and the amount can be reasonably estimated.
D) Remote and the amount cannot be reasonably estimated.

Question

Quizplus · Accepted Answer

The disclosure of a contingent liability does not have to be presented if the probability of owing money is remote and the amount cannot be reasonably estimated.

Cress Company Is Involved in a Lawsuit