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In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a company must a) Recognize
In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a company must
a) Recognize the liability and report it on the balance sheet.
b) Do nothing.
c) Not recognize or disclose the liability until it is certain and the exact amount is known.
d) Provide disclosure in the footnotes to the financial statements.
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