Which of the Following Accurately Describes How Contingent Liabilities Are

Multiple Choice

Which of the following accurately describes how contingent liabilities are reported on the Balance Sheet?

A) Contingent liabilities are not reported.
B) Contingent liabilities are disclosed in the footnotes only.
C) Contingent liabilities are reported in the liabilities section.
D) The accounting treatment for contingent liability could be A, B, or C depending on the likelihood of an actual obligation occurring.