Contingent liabilities must be recorded if:
A)The future event is probable and the amount owed can be reasonably estimated.
B)The future event is remote.
C)The future event is reasonably possible but not estimable.
D)The amount owed cannot be reasonably estimated.
E)The future event is probable but not estimable.

Question

Quizplus · Accepted Answer

Contingent liabilities must be recorded if the future event is probable and the amount owed can be reasonably estimated. This means that there is a likelihood of the liability occurring and that the amount can be reasonably estimated. Other options such as remote, not estimable, or probable but not estimable would not meet the criteria for recording a contingent liability.

Contingent Liabilities Must Be Recorded If