Which of the following statements regarding contingencies is true?
A) Contingencies that are probable and not estimable appear on the balance sheet.
B) Contingent assets are recorded on the balance sheet, but not in the notes to the financial statements.
C) Contingencies that are probable and not estimable are disclosed in the notes to the financial statements.
D) Contingencies that are remote but estimable are disclosed in the notes to the financial statements

Question

Quizplus · Accepted Answer

Contingencies that are probable but not estimable are disclosed in the notes to the financial statements, as they cannot be recorded on the balance sheet due to the lack of a reliable estimate.

Which of the Following Statements Regarding Contingencies Is True