Contingent liabilities must be recorded if:
A)The future event is probable and the amount owed can be reasonably estimated.
B)The future event is remote.
C)The future event is reasonably possible.
D)The amount owed cannot be reasonably estimated.
E)All of the choices are correct.

Question

Quizplus · Accepted Answer

Contingent liabilities must be recorded if the future event is probable and the amount owed can be reasonably estimated. This is based on the Generally Accepted Accounting Principles (GAAP) and ensures that financial statements accurately reflect potential obligations that the company may have.

Contingent Liabilities Must Be Recorded If