A contingent liability that will probably become an actual liability must be estimated and recorded as an expense.

Name: A contingent liability that will probably become an actual liability must be estimated and recorded as an expense.
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Question

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A contingent liability that is probable and can be reasonably estimated must be recorded in the financial statements as both a liability and an expense, according to accounting principles.

A Contingent Liability That Will Probably Become an Actual Liability