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 behavior.

Question

Quizplus · Accepted Answer

According to accounting standards, contingent liabilities that are considered to have a remote possibility of occurrence do not typically require disclosure in the financial statements or notes, as they are not expected to have a significant impact on the financial position or performance of the entity.

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