A Company Has a Probable Contingent Gain That Can Be

Multiple Choice

A company has a probable contingent gain that can be reasonably estimated. What reporting does the FASB require regarding this contingency?

A) It should be reported in the notes to the financial statements.
B) It should be ignored until the actual gain materializes.
C) It should either be reported in the notes to the financial statements or recorded on the financial statements.
D) It should be accrued and reported in the financial statements.