When the Amount of a Contingent Liability Can Be Reasonably

Multiple Choice

When the amount of a contingent liability can be reasonably estimated and its likelihood is possible but not 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) accrue the amount of the liability as a long-term liability.
D) exclude any information about the contingent liability from its financial statements and notes.