Which of the following is the proper way to report a gain contingency?
A) As an accrued amount.
B) As deferred revenue.
C) As an account receivable with additional disclosure explaining the nature of the contingency.
D) As a disclosure only.

Question

Quizplus · Accepted Answer

A gain contingency should only be disclosed in the footnotes of the financial statements and not recognized as an asset or income until it is realized.

Which of the Following Is the Proper Way to Report