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The Thackeray Company is being sued and believes it is 'reasonably possible' that the company will lose the suit. The company estimates losses of $40,000.
The Thackeray Company is being sued and believes it is 'reasonably possible' that the company will lose the suit. The company estimates losses of $40,000. Which of the following is true with relation to this possible loss?
Mark all that apply.
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The company should record an expense for the possible loss.
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The company should record a liability for the possible amount owed.
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The company should disclose the possible loss in its footnotes
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The company does not need to record or disclose anything related to the possible loss/liability
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