Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is reasonably possible and amount is estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Question

Quizplus · Accepted Answer

When an event is reasonably possible and the amount is estimable, the proper treatment for the contingent liability is to disclose it only in the notes to the financial statements, without recording it in the accounts.

Use the Following Key (A-D) to Identify the Proper Treatment