Footnote disclosure in the financial statement is necessary if the contingent liability is:
A) Remote.
B) Probable.
C) Reasonably possible.
D) Has occurred.

Question

Quizplus · Accepted Answer

Footnote disclosure is required when the contingent liability is reasonably possible. If the contingency is remote or has occurred, disclosure may not be necessary. If the liability is probable, it must be recognized on the balance sheet as a liability.

Footnote Disclosure in the Financial Statement Is Necessary If the Contingent