For a given contingent liability,a company has the choice of either recording it on the balance sheet or disclosing it in the notes.

Name: For a given contingent liability,a company has the choice of either recording it on the balance sheet or disclosing it in the notes.
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Question

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A contingent liability is only recorded on the balance sheet if it is probable and the amount can be reasonably estimated; otherwise, it is disclosed in the notes.

For a Given Contingent Liability,a Company Has the Choice of Either