Question

When a company has a contingent liability that is remote in likelihood, the company should:

A) include a description in the notes to the financial statements.

B) record the amount of the liability times the probability of its occurrence.

C) record the amount of the liability as a long-term liability on the balance sheet.

D) exclude the information about the contingent liability from its financial statements and notes.

Answer

This answer is hidden. It contains 103 characters.