Which one of the following correctly describes the circumstances in which a contingent liability should be recognized

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Which one of the following correctly describes the circumstances in which a contingent liability should be recognized as a liability in the financial statements?

a. The chance of the future event occurring is remote.

b. The chance of the future event occurring is possible.

c. The chance of the future event occurring is probable.

d. The chance of the future event occurring is slight.

e. The chance of the future event occurring is more likely than not.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 30, 2011 03:31 AM

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Which one of the following correctly describes the circumstances in which a contingent liability should be recognized

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Accounting concepts and applications

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