When the Amount of a Contingent Liability Can Be Estimated

Multiple Choice

When the amount of a contingent liability can be estimated and it is likely,the company should:

A) include a description in the footnotes to the financial statements.
B) record the estimated 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.