Under ASPE, a contingent liability must be accrued in the financial statements if
A) it can be reasonably estimated and is unlikely to occur.
B) it can be reasonably estimated and is likely to occur.
C) it is likely to occur but cannot be reasonably estimated.
D) the amount of the potential loss is greater than the balance in the cash account.

Question

Quizplus · Accepted Answer

Under ASPE, a contingent liability must be accrued if it can be reasonably estimated and is likely to occur.

Under ASPE, a Contingent Liability Must Be Accrued in the Financial