Done Corp. is a defendant in a lawsuit.?

Done’s attorneys believe it is reasonably possible that the suit will require Done to pay a substantial amount. What is the proper financial statement treatment for this contingency?

A. Accrued and disclosed.B. Accrued but NOT disclosed.C. Disclosed but NOT accrued.D. No disclosure or accrual.

Accounting Auditing Cost Accounting Budgeting Financial Accounting

Question added by Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC
Date Posted: 2015/08/13

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by Shivam Jaiswal , Assistant Manager , ISS HARDWARE PVT. LTD.

D.No disclosure or accrual

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