No disclosure in the financial statement is necessary if the contingent liability:
A) is remote.
B) is probable.
C) is reasonably possible.
D) has occurred.

Question

Quizplus · Accepted Answer

Disclosure in the financial statement is only necessary for contingent liabilities that are probable or reasonably possible. If a contingent liability is remote, it is so unlikely to occur that disclosure is not necessary. Therefore, option A is correct.

No Disclosure in the Financial Statement Is Necessary If the Contingent