In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount

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Question:

In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a company must

a) Recognize the liability and report it on the balance sheet.

b) Do nothing.

c) Not recognize or disclose the liability until it is certain and the exact amount is known.

d) Provide disclosure in the footnotes to the financial statements.

Related Book For answer-question

Governmental and Nonprofit Accounting

ISBN: 978-0132751261

10th edition

Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi

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Posted Date: Oct 04, 2018 04:06 AM

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In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount

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d Provide disclosure in the footnotes to the financial statemen... View the full answer

Governmental and Nonprofit Accounting

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