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

Question

Utilisateur supprimé · Answer

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

1- Probable

2- Reasonably estimated .

Said Shaban · Answer

Contingent liability that are recorded:

liability is probable.

Correct answer is D

Michael Lagunday · Answer

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