Contingent liabilities such as pending lawsuits: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C d Should only be disclosed in the notes to financial statements if payment for damages is likely and the amount ca be reasonably estimated Should always be recorded in the body of financial statements Should be recognized as a liability if payment for damages is unlikely and the amount of liability can be reasona estimated Should only be disclosed in the notes to financial statements if payment for damages is likely but the amount cannot be reasonably estimated