Orange Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If expropriation is reasonably possible, a loss contingency should be:

Multiple Choice

• Disclosed but not accrued as a liability.

• Disclosed and accrued as a liability.

• Accrued as liability but not disclosed.

• Neither accrued as a liability nor disclosed.