Question
Daisy Company has determined that a contingent liability relating to food-poisoning lawsuits is $5,000. It is reasonably possible Daisy will have to pay the liability.
Daisy Company has determined that a contingent liability relating to food-poisoning lawsuits is $5,000. It is reasonably possible Daisy will have to pay the liability. Where on the financial statements would this contingent liability be located?
Group of answer choices
Balance sheet
Income statement
Disclosed in footnotes
It is not recorded nor reported
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Auditing The Art And Science Of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser-Hogeterp
11th Edition
0132088061, 978-0132088060
