Rice Corporation's attorney has provided the following summaries of three lawsuits against Rice:
• lawsuit A: The loss is probable,but the loss can't be reasonably estimated.
• lawsuit B: The loss is reasonably possible,but the loss can't be reasonably estimated.
• lawsuit C: The loss is reasonably possible and can be reasonably estimated.
Which of the following statements is incorrect?
A)A disclosure note is required for Lawsuit A.
B)A disclosure note is required for lawsuit B.
C)A disclosure note is required for lawsuit C.
D)Lawsuit A is reported on the balance sheet as a liability.

Question

Quizplus · Accepted Answer

To be reported as a liability on the balance sheet, contingent losses must be both probable and reasonably estimated.

Rice Corporation's Attorney Has Provided the Following Summaries of Three