A Disclosure of a Contingent Liability in the Footnotes Is

Multiple Choice

A disclosure of a contingent liability in the footnotes is made rather than adjusting the financial statement accounts when:

A) the outcome of the event is judged to be probable and the loss can be reasonably estimated.
B) the loss can be reasonably estimated, but the outcome is unknown.
C) the outcome of the event is judged to be reasonably possible or the loss cannot be reasonably estimated.
D) the outcome is unknown and the loss is reasonably estimable but the entity does not want to book the loss.