Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is reasonably possible but amount is not 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 but the amount is not estimable, the proper treatment is to disclose the contingent liability in the notes to the financial statements without recording it in the accounts.

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