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Question 43 2 pts Assume a company is currently involved in litigation that is still awaiting settlement. Management believes losses related to this lawsuit
Question 43 2 pts Assume a company is currently involved in litigation that is still awaiting settlement. Management believes losses related to this lawsuit would be $500,000. However, management considers the likelihood of the company losing the lawsuit remote. What is the appropriate accounting treatment for this contingent liability? Record as liability and disclose in the footnotes. O Record as liability only. No disclosure required. O Footnote disclosure only.
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