Under ASPE, a Contingent Liability Must Be Accrued in the Financial

question 51

Multiple Choice

Under ASPE, a contingent liability must be accrued in the financial statements if

• A) it can be reasonably estimated and unlikely to occur.
• B) it can be reasonably estimated and likely to occur.
• C) it is likely to occur but cannot be reasonably estimated.
• D) the amount of the potential loss is greater than the balance in the cash account.