Which of the Following Is Correct with Respect to a Contingent

Multiple Choice

Which of the following is correct with respect to a contingent liability that is "reasonably possible" but "cannot reasonably be estimated"?

A) It must be recorded and reported as a liability.
B) It does not need to be recorded or reported as a liability.
C) It must only be disclosed as a note to the financial statements.
D) It must be reported as a liability, but not recorded.