The disclosure of a contingent liability in the footnotes and on the Balance Sheet indicates that the potential for the obligation occurring is:
A)remote.
B)possible.
C)probable.
D)certain.

Question

Quizplus · Accepted Answer

A contingent liability is disclosed in the footnotes and on the Balance Sheet when it is probable that the obligation will occur and the amount can be reasonably estimated.

The Disclosure of a Contingent Liability in the Footnotes and on the Balance