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Match the likelihood of future event with the repotting of the contingency. An answer may be
selected more than once. (Click the icon to view the reporting of the contingency ) Likelihood of
Future Event 5. Remote 6. Reasonably possible 7. Probable and the amount of the loss cannot be
esti 8. Probable and the amount of the loss can be estimat How to Report the Contingency a. Do
not disclose. b. Record an expense and a liability based on estimated amounts. c. Describe the
situation in a note to the financial statements.
Solution
Answer:
5. Do not Disclose
6. Describe the situation in a note to the financial statements
7. Describe the situation in a note to the financial statements
8. Record an expense and liability based on the estimated amount and
Describe the situation in a note to the financial statements

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  • 1. Match the likelihood of future event with the repotting of the contingency. An answer may be selected more than once. (Click the icon to view the reporting of the contingency ) Likelihood of Future Event 5. Remote 6. Reasonably possible 7. Probable and the amount of the loss cannot be esti 8. Probable and the amount of the loss can be estimat How to Report the Contingency a. Do not disclose. b. Record an expense and a liability based on estimated amounts. c. Describe the situation in a note to the financial statements. Solution Answer: 5. Do not Disclose 6. Describe the situation in a note to the financial statements 7. Describe the situation in a note to the financial statements 8. Record an expense and liability based on the estimated amount and Describe the situation in a note to the financial statements