TB MC Qu$.10-177($Static$)$ When the amount of a contingent...

When the amount of a contingent liability cannot be reasonably estimated but its likelihood is probable, the company should:

Multiple Choice

include a description in the notes to the financial statements.

record the amount of the liability times the probability of its occurrence.

record the amount of the liability as a long$-$term liability on the balance sheet.

exclude the information about the contingent liability from its financial statements and footnotes.