An Obligation That Is Contingent on the Occurrence of a Future

question 25

Multiple Choice

An obligation that is contingent on the occurrence of a future event should be reported in the balance sheet as a liability if the

• A) future event is likely to occur.
• B) amount of the obligation can be reasonably estimated.
• C) occurrence of the future event is at least reasonably possible and the amount is known.
• D) occurrence of the future event is probable and the amount can be reasonably estimated.

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