Which of the following factors affects the accounting for contingent liabilities?

Question

Quizplus · Accepted Answer

The accounting for contingent liabilities is affected by the likelihood of occurring and measurement. The likelihood of occurring indicates the probability of the contingency happening, and the measurement influences the amount to be recorded in the financial statements. Factors such as financial and economic conditions, the coupon rate and market rate of interest, and investor's expectations may impact the likelihood and measurement of a contingent liability, but they do not directly affect the accounting treatment of it.

Which of the Following Factors Affects the Accounting for Contingent