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 probable, the company should:

A) include a description in the footnotes to the financial statements.
B) record the estimated amount of the liability times the probability of its occurrence.
C) record the estimated amount of the liability on the balance sheet.
D) omit the information about the contingent liability from its financial statements and footnotes.