Contingent liabilities are recorded or disclosed unless they are:
A)Probable and estimable.
B)Remote (very unlikely).
C)Reasonably possible.
D)Probable and not estimable.
E)Possible and estimable.

Question

Quizplus · Accepted Answer

Contingent liabilities are only not recorded or disclosed when they are considered remote or very unlikely to occur. In all other cases (probable and estimable, reasonably possible, probable and not estimable, possible and estimable), they are either recorded in the financial statements or disclosed in the notes.

Contingent Liabilities Are Recorded or Disclosed Unless They Are