If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is probable, a contingent liability should be

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If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is probable, a contingent liability should be

A) Disclosed, but not reported as a liability.

B) Disclosed and reported as a liability.

C) Neither disclosed nor reported as a liability.

D) Reported as a liability, but not disclosed.

Answer: B

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