Which of the following statements is not true?
A)Loss contingencies should be disclosed if there is just a reasonable possibility of a loss.
B)Indirect guarantees should normally be disclosed by footnote, not by accrual.
C)In the case of loss contingencies, accrual can be made even if the exact payee and payment date are not known.
D)Losses may be accrued for unasserted claims and other potential unfiled lawsuits.

Question

Quizplus · Accepted Answer

Losses for unasserted claims and potential unfiled lawsuits are generally not accrued unless it is probable that a claim will be asserted and the amount can be reasonably estimated.

Which of the Following Statements Is Not True