Accounting MCQ Accounting A contingent liability should be recorded in a company's financial statements only if the likelihood of a loss occurring is:

A contingent liability should be recorded in a company's financial statements only if the likelihood of a loss occurring is:

Naim 14:06 Accounting

A contingent liability should be recorded in a company's financial statements only if the likelihood of a loss occurring is:

A) At least remotely possible and the amount of the loss is known.

B) At least reasonably possible and the amount of the loss is known.

C) At least reasonably possible and the amount of the loss is reasonably estimable.

D) Probable and the amount of the loss can be reasonably estimated.

Answer: D

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