How Should a Contingent Liability That Is Reasonably Possible but Cannot

question 58

Multiple Choice

How should a contingent liability that is reasonably possible but cannot reasonably be estimated be reported within the financial statements?

• A)It must be recorded and reported as a liability.
• B)It does not need to be recorded as a liability nor disclosed in a note.
• C)It must only be disclosed as a note to the financial statements.
• D)It must be reported as a liability,but not disclosed in a note.

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Definitions:

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A measure of how content individuals are within their interpersonal relationships, including factors of emotional needs being met.

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A set of rules, norms, and structures that guide and organize human social behavior within a society.

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