Houston Company Is Involved in a Lawsuit

Multiple Choice

Houston Company is involved in a lawsuit.In which of the following situations is only footnote disclosure of the contingent liability reported within the financial statements?

A) When the loss is remote and the amount cannot be reasonably estimated.
B) When the loss is probable and the amount can be reasonably estimated.
C) When the loss is reasonably possible and the amount can be reasonably estimated.
D) When the loss is remote and the amount can be reasonably estimated.