If the Amount of a Probable Loss on a Contingent

Multiple Choice

If the amount of a probable loss on a contingent liability cannot be estimated but the event is likely,the liability should be

A) accrued and indicated in the body of the financial statements.
B) disclosed in footnotes but not accrued.
C) neither accrued nor disclosed in footnotes.
D) disclosed in the auditor's report but not disclosed on the financial statements.