A certain contingent liability was evaluated at year-end,and considered to have a remote possibility of becoming an actual liability.If the accountant decided NOT to report it on the balance sheet or in the notes to the financial statement,this could be considered unethical behaviour.

Question

Quizplus · Accepted Answer

Contingent liabilities with a remote possibility of becoming actual liabilities do not need to be reported on the balance sheet or in the notes, according to accounting standards.

A Certain Contingent Liability Was Evaluated at Year-End,and Considered to Have