Signify the most appropriate response for each of the following situations regarding contingent liabilities.

1.The future event is probable and can be reasonably estimated

2.The future event is probable but cannot be reasonably estimated

3.The future event is remote and can be reasonably estimated

4.The future event is remote but cannot be reasonably estimated

5.The future event is moderately possible and can be reasonably estimated

6.The future event is moderately possible but cannot be reasonably estimated

Answer for each question being one of the following

A.

The liability should be recorded in the financial statements.

B.

The liability should be disclosed in a footnote.

C.

The liability does not need to be recorded or disclosed.