Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is probable and amount is estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Question

Quizplus · Accepted Answer

When an event is probable and the amount can be estimated, the proper treatment is to record the liability in the financial statements and also disclose it in the notes to the financial statements.

Use the Following Key (A-D) to Identify the Proper Treatment