A contingency liability that is remote
A) should be disclosed in the financial statements.
B) must be accrued as a loss.
C) does not need to be disclosed.
D) is recorded as a contingent liability.

Question

Quizplus · Accepted Answer

A contingency liability that is remote does not need to be disclosed in the financial statements as it has a very low probability of occurring. It is not recorded as a contingent liability and does not need to be accrued as a loss.

A Contingency Liability That Is Remote