A contingent liability that has a remote possibility of becoming an actual loss is not included in a note to the financial statements.

Question

Quizplus · Accepted Answer

Contingent liabilities with a remote possibility of becoming an actual loss are not disclosed in the notes to the financial statements. Only those contingent liabilities with a reasonable possibility or a probable likelihood of becoming actual losses are disclosed.

A Contingent Liability That Has a Remote Possibility of Becoming