Which of the following terms is associated with recording a contingent liability?
A) Possible.
B) Likely.
C) Remote.
D) Probable.

Question

Quizplus · Accepted Answer

"Probable" is the term associated with recording a contingent liability, as it means that the likelihood of the obligation arising is high enough that it is probable to occur. The other choices, "possible," "remote," and "likely," all indicate varying degrees of uncertainty and would not necessarily warrant recording a contingent liability.

Which of the Following Terms Is Associated with Recording a Contingent