A contingent liability that has a remote chance of occurrence should be disclosed in the financial statement footnotes.
Correct Answer:
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Q1: The presence of an Unearned Revenue account
Q2: When recording interest accrued on very short-term
Q4: Warranty expense is recognized in the same
Q5: A contingent liability is a potential liability,
Q6: Sales tax collected by the merchant is
Q7: A contingent liability that has a probable
Q8: The amount of long-term debt that must
Q9: Current liabilities are obligations due within one
Q10: Sales tax payable is an estimated liability
Q11: For most service companies, the major expense
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