When a Company Encounters a Contingent Liability That Is Remote

Multiple Choice

When a company encounters a contingent liability that is remote in likelihood,the company should:

A) include a description in the foot notes to the financial statements.
B) record the amount of the liability times the probability of its occurrence.
C) record the liability and estimated amount of the loss on the balance sheet.
D) omit the information about the contingent liability from its financial statements and footnotes.