No disclosure is required for contingent liabilities that are

Question

Quizplus · Accepted Answer

According to accounting principles, disclosure of contingent liabilities is required only if it is probable that a liability has been incurred, and the amount of the liability can be reasonably estimated. However, if the likelihood of incurring a liability is remote, then no disclosure is required. Therefore, the best choice is B) Remote, as disclosure is not required for contingent liabilities that are considered remote.

No Disclosure Is Required for Contingent Liabilities That Are