Even liabilities of unknown amounts are required to be placed on the balance sheet.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), liabilities of unknown amounts, also known as contingent liabilities, must be disclosed on the balance sheet if the likelihood of occurrence is probable and the amount can be reasonably estimated. If the likelihood of occurrence is only possible or remote, then the contingent liability may be disclosed in the footnotes to the financial statements.

Even Liabilities of Unknown Amounts Are Required to Be Placed