If management can estimate the amount of loss that will occur due to litigation against the company,and the likelihood of the loss is reasonably possible,a contingent liability should be
A)Disclosed,but not reported as a liability.
B)Disclosed and reported as a liability.
C)Neither disclosed nor reported as a liability.

Question

Quizplus · Accepted Answer

When a loss from litigation is considered reasonably possible and the amount can be estimated, it should be disclosed in the financial statements' notes but not reported as a liability on the balance sheet.

If Management Can Estimate the Amount of Loss That Will