Review the following:
Probable: the chance that the future event or events will occur is high.Reasonably possible: the chance that the future event or events will occur is more than remote but less than likely (probable).
Remote: the chance that the future event or event will occur is slight.
Which of the following rules about contingent liabilities is NOT true?
A) A contingent liability that can be estimated and is probable should be recorded.
B) A contingent liability that cannot be estimated and is probable should be recorded.
C) A contingent liability that cannot be estimated and is remote should not be recorded or disclosed.
D) A contingent liability that can be estimated and is only reasonably possible should be disclosed but not recorded.
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.