According to GAAP a contingent liability can be classified as
A)probable and estimable.
B)reasonably possible, or probable but not estimable.
C)remote.
D)All of the answers describe classifications of contingent liabilities.

Question

Quizplus · Accepted Answer

GAAP recognizes three classifications of contingent liabilities: probable and estimable, reasonably possible, and remote. Therefore, all of the answers fully describe the classifications of contingent liabilities recognized under GAAP.

According to GAAP a Contingent Liability Can Be Classified as