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Accounting for contingent liabilities covers three possibilities:
(1) The future event is probable and the amount cannot be reasonably estimated;
(2) The future event is remote or unlikely to recur;
(3) The likelihood of the liability to occur is impossible.
A) True
B) False

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The correct answer is B: False

Further Explanation:

The above listed accounting for contingent liabilities are all incorrect.

The correct three categories that are used for accounting for contingent liabilities covers are;

  1. probable
  2. possible
  3. remote

The three possibilities for accounting for contingent liabilities coverage are;

  • a liability that may possibly occur in the future, such as a warranty or court dispute.
  • If (liabilities) are likely to happen and the cost can be estimated, it should be recorded with the accounting department.
  • All contingent liabilities must be recorded within the firm to be accurate and meet government and GAAP requirements.

Learn more about contingent liabilities at https://brainly.com/question/13770873

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