Disclosure of a contingent loss is usually made
A) parenthetically, in the body of the balance sheet.
B) parenthetically, in the body of the income statement.
C) in a note to the financial statements.
D) in the management discussion section of the financial statement.

Question

Quizplus · Accepted Answer

Contingent losses are typically disclosed in the notes to the financial statements. This allows for a detailed explanation of the nature of the contingency, its potential financial impact, and the circumstances that would lead to the realization of the loss.

Disclosure of a Contingent Loss Is Usually Made