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Which of the following terms is associated with recording a contingent liability? a. Possible. b. Likely. c. Remote. d. Probable

Accounting Financial Accounting
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Question added by Said Shaban , Accountant , Tri State Materials Testing
Date Posted: 2015/07/27
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Deleted user
by Deleted user

To record a contingency liability two conditions should be met according to US GAAP :

1- Probable 

2- Reasonably estimated .

Said Shaban
by Said Shaban , Accountant , Tri State Materials Testing

Contingent  liability that are recorded:

liability is probable.

Correct answer is D

Michael Lagunday
by Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC

The liability is said to be contingent when it is possible.

 

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