In order to be a recorded contingent liability, the liability must be possible and easily estimated.

Name: In order to be a recorded contingent liability, the liability must be possible and easily estimated.
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Question

Quizplus · Accepted Answer

For a liability to be recorded as a contingent liability, it must be both probable and the amount can be reasonably estimated. "Possible" does not meet the threshold for recording; the standard is "probable."

In Order to Be a Recorded Contingent Liability, the Liability