According to U.S. GAAP, which criteria must be met in order to recognize a contingent liability?
A) The obligation is certain to require payment at some point in the future
B) The obligation is probable
C) The obligation is estimable
D) The obligation is reasonably possible
E) Answers B and C

Question

Quizplus · Accepted Answer

Under U.S. GAAP, for a contingent liability to be recognized, it must be both probable that the obligation will occur and the amount of the obligation can be reasonably estimated.