Asked by
Marco McLaren
on Oct 28, 2024
Verified
Which of the following statements is correct?
A) A disclosure note is required for each of the three lawsuits.
B) A disclosure note is required only for lawsuits A & C.
C) A disclosure note is required only for lawsuit A.
D) A disclosure note is required only for lawsuits B & C.
Contingent Liability
A potential financial obligation that may arise in the future depending on the outcome of an uncertain event or situation.
Probable Loss
A loss in financial terms that is likely to occur based on current information and judgment.
Reasonably Possible
A term used in accounting to describe a condition that could occur, affecting financial decisions or disclosures, based on current knowledge and events.
- Understand the criteria for recognizing, measuring, and disclosing contingent liabilities in financial statements.
Verified Answer
SF
Learning Objectives
- Understand the criteria for recognizing, measuring, and disclosing contingent liabilities in financial statements.