Which of the following statements concerning contingencies is true?
A) Contingent liabilities are always recorded in the body of the financial statements.
B) Contingent liabilities are always disclosed in the footnotes to the financial statements.
C) Contingent gains are sometimes recorded in the body of the financial statements.
D) Contingent gains are sometimes disclosed in the footnotes to the financial statements.

Question

Quizplus · Accepted Answer

Contingent gains are not recorded in the financial statements but may be disclosed in the footnotes if they are probable and can be reasonably estimated.

Which of the Following Statements Concerning Contingencies Is True