Multiple Choice
When a company has a contingent liability that is remote in likelihood,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 notes.
Correct Answer:
Verified
Correct Answer:
Verified
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