Which of the following statements is incorrect?

A) There is a 70% chance that lawsuit A will result in a future economic sacrifice for Darwin.
B) A disclosure note is required for lawsuit C.
C) A disclosure note is not required for lawsuit B.
D) Lawsuit A is reported on the balance sheet as a liability.

Probable Loss

An estimated financial loss from future events that are considered likely to occur based on current evidence or events.

Economic Sacrifice

A concept referring to the cost or loss associated with making a particular decision or taking an action.

Disclosure Note

A note included in financial statements that provides additional information relevant to an organization's financial position.