If the amount of a liability cannot be exactly determined,it should not be recorded.

Name: If the amount of a liability cannot be exactly determined,it should not be recorded.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the amount of a liability cannot be exactly determined, it should be recorded as a best estimate or a range of possible amounts. This is in accordance with the accounting principle of conservatism, which requires that liabilities be recognized when they are probable and their amounts can be reasonably estimated.

If the Amount of a Liability Cannot Be Exactly Determined,it