A contingent liability is recognized when the amount can be reasonably estimated and the likelihood of loss is probable.

Name: A contingent liability is recognized when the amount can be reasonably estimated and the likelihood of loss is probable.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Contingent liabilities are recognized in the financial statements if two conditions are met - the amount of liability can be reasonably estimated, and the likelihood of loss is probable (i.e., more likely than not).

A Contingent Liability Is Recognized When the Amount Can Be