If a Contingent Liability Is Reasonably Estimable and It Is

Multiple Choice

If a contingent liability is reasonably estimable and it is reasonably possible that the contingency will occur, the contingent liability

A) should be recorded in the accounts.
B) should be disclosed in the notes accompanying the financial statements.
C) should not be recorded or disclosed in the notes until the contingency actually happens.
D) must be paid for the amount estimated.