A contingency was evaluated at year-end and considered to have a remote possibility of becoming an actual liability.If this is not reported on the balance sheet or in the notes to the financial statements,it could be considered a violation of generally accepted accounting principles.

Question

Quizplus · Accepted Answer

The company does not need to record a remote contingent liability and does not need to disclose it in the notes to the financial statement.

A Contingency Was Evaluated at Year-End and Considered to Have