Contingent Liability Disclosure in the Footnotes of the Financial Statements

Multiple Choice

Contingent liability disclosure in the footnotes of the financial statements would normally be made when

A) the outcome of the accounting event is deemed probable, but a reasonable estimation as to the amount cannot be made by the client or auditor.
B) a reasonable estimation of the loss can be made, but the outcome is not probable.
C) the outcome of the accounting event is deemed probable, and a reasonable estimation as to the amount can be made.
D) the outcome of the accounting event as well as a reasonable estimation of the loss cannot be made.