Which of the Following Statements Regarding Contingent Liabilities Is True

question 50

Multiple Choice

Which of the following statements regarding contingent liabilities is true?

• A)If they are probable and estimable, then they must be recorded even before the outcome of the future event.
• B)If they are probable and estimable, then they should be disclosed in the notes to the financial statements.
• C)The accounting principle that determines whether a contingent liability is to be recorded is that of Historical Cost.
• D)Contingencies that are not estimable should not be recorded or disclosed in the financial statements even if they are probable.

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