When the Amount of a Contingent Liability Cannot Be Reasonably

Multiple Choice

When the amount of a contingent liability cannot be reasonably estimated but its likelihood is probable,the company should:

A) include a description in the notes to the financial statements.
B) record the amount of the liability times the probability of its occurrence.
C) record the amount of the liability as a long-term liability on the balance sheet.
D) exclude the information about the contingent liability from its financial statements and footnotes.