Depending on the ability to estimate a contingent liability…
Depending on the ability to estimate a contingent liability and probability of the contingent liability, different accounting treatments are required for the contingent liability. Select the answer for the roper accounting treatment depending on those two factors. Answers can be used none, once, or more than once. The factor you should judge is marked with an “X”. Probable Reasonably Possible Remote Estimable X Not Estimable A. Record as a liability in the financial statements B. Record as a loss on the income statement C. Disclose in the notes to the financial statements D. Disclose on the company website E. Disclosure not required