Which of the following would appear only in the footnotes accompanying the financial statements?

Question

Quizplus · Accepted Answer

C is correct because when a loss from a pending lawsuit is probable but the amount is not determinable, it is disclosed in the footnotes rather than being recorded on the financial statements. Options A and B involve specific amounts, which would typically be recorded as a liability if the loss is probable and the amount can be reasonably estimated. Option D involves a settled lawsuit, which would result in a recorded liability rather than a footnote disclosure.

Which of the Following Would Appear Only in the Footnotes