Question: if a potential loss on a contingent liability is probable, and the amount of the loss can be reasonably estimated, the liability should be 1.

if a potential loss on a contingent liability is probable, and the amount of the loss can be reasonably estimated, the liability should be 1. accrued and indicated in the body of the financial statements 2. disclosed in footnotes, but not accrued 3. disclosed in the auditor's report, but not disclosed on the financial statements 4. neither accrued, nor disclosed in footnotes

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