Contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

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Destiny McGowan · Accepted Answer

Final Answer : False, Explanation :  Contingent liabilities should only be recorded in the accounts if it is probable that the contingency will actually occur and the amount can be reasonably estimated. If the probability of occurrence is remote, then disclosure in the footnotes of the financial statements may be sufficient.

Contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

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