Contingent liabilities must be:
A) recorded on the balance sheet between current and long-term liabilities.
B) disclosed in the footnotes.
C) recorded in the ledger, or no disclosure is required.
D) material and imminent, or they should not even be mentioned.

Question

Quizplus · Accepted Answer

Contingent liabilities should be disclosed in the footnotes of the financial statements. This is because they are not certain obligations and may or may not happen in the future, but they still have the potential to impact the financial position of the company. By disclosing them in the footnotes, users of the financial statements can make more informed decisions about the company's financial health.

Contingent Liabilities Must Be