When a company has a contingent liability that is remote in likelihood, the company should Multiple Choice 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 notes Include a description in the notes to the financial statements. record the amount of the ability times the probability of its occurrence A contingent liability is: Multiple Choice always a specific amount. a potential obligation that depends on a future event an obligation arising from the purchase of goods or services on credit an obligation not requiring a future payment