A Contingent Liability Should Be Shown by Way of a Note

question 2

Multiple Choice

A contingent liability should be shown by way of a note to the accounts when:

• A) there is significant uncertainty as to whether a sacrifice of future economic benefits will be required.
• B) the amount of the obligation cannot be measured reliably.
• C) estimation procedures were necessary to determine its amount.
• D) there is significant uncertainty as to whether a sacrifice of future economic benefits will be required and the amount of the obligation cannot be measured reliably.

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