Which of the following are generally recorded as liabilities on the balance sheet?
A)Remote likelihood liabilities.
B)Possible contingent liabilities.
C)Probable contingent liabilities.
D)All of the answers are acceptable.

Question

Quizplus · Accepted Answer

Probable contingent liabilities are generally recorded as liabilities on the balance sheet because there is a high likelihood that they will be realized and result in an outflow of resources from the company. Remote likelihood liabilities and possible contingent liabilities are not recorded as liabilities on the balance sheet because they are less certain and may not result in an actual liability.

Which of the Following Are Generally Recorded as Liabilities on the Balance