If a loss contingency is likely to occur and its amount can be reasonably estimated, it should be recorded in the accounts.

Question

Quizplus · Accepted Answer

According to accounting principles, if a loss contingency is both likely to occur and the amount can be reasonably estimated, it should be recorded in the financial statements to ensure they present a complete and accurate picture of the company's financial position.

If a Loss Contingency Is Likely to Occur and Its