Under ASPE, a Contingent Liability Must Be Accrued in the Financial

Multiple Choice

Under ASPE, a contingent liability must be accrued in the financial statements if

A) it can be reasonably estimated and unlikely to occur.
B) it can be reasonably estimated and likely to occur.
C) it is likely to occur but cannot be reasonably estimated.
D) the amount of the potential loss is greater than the balance in the cash account.