Management can estimate the amount of loss that will occur if the company does not prevail in a currently contested lawsuit. If losing the suit is reasonably possible, which of the following describes how the entity may report the loss contingency in the financial statements?

	Balance Sheet	Notes to Financial Statements
a.	Accrued as liability	Disclosed
b.	Not accrued	Disclosed
c.	Not accrued	Not disclosed
d.	Accrued as liability	Not disclosed

Multiple Choice

Option a

Option b

Option c

Option d