When the Amount of a Contingent Liability Can Be Estimated

Multiple Choice

When the amount of a contingent liability can be estimated and its likelihood is possible but not probable, the company should:

A) include a description in the footnotes 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.
D) omit the information about the contingent liability from its financial statements and footnotes.