If a contingency is remote,the company does not need to record a liability and does not need to disclose it in the notes to the financial statements.

Name: If a contingency is remote,the company does not need to record a liability and does not need to disclose it in the notes to the financial statements.
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Question

Quizplus · Accepted Answer

A remote contingency is one that is unlikely to occur, so it does not require recognition as a liability or disclosure in the financial statements.

If a Contingency Is Remote,the Company Does Not Need to Record