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What is the proper accounting treatment for a loss that is either probable or estimable, but not both? Assume that there is at least a
What is the proper accounting treatment for a loss that is either probable or estimable, but not both? Assume that there is at least a reasonable possibility that a liability may have been incurred. O The financial statements should record the loss and the related liability, but indicate in the footnotes that this loss may not occur because one of the criteria may not be met. O The footnotes to the financial statements should disclose (1) the nature of the contingency, and (2) an estimate of the possible loss or range of loss or a statement that an estimate cannot be made. O The financial statements should record the loss and the related liability, but at an amount that is significantly conservative. O Neither the financial statements nor the footnotes should record the contingency or make mention of it because it lacks the required criteria
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