tion 12 A company is facing a class-action lawsult in the upcoming year.I is pos

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tion 12 A company is facing a class-action lawsult in the upcoming year.I is possible, but not probable, that the company will have to pay a setlement of approximately $800 be reported, if at all, in the financial statements to be issued at the end of the current month? A. Reporting is not required in this case. B.Report $800,000 as a current latility. C. Report $800,000 as a long-term liability D.Report the potential labityinthe footnotes to the macia statemen Moving to another question will save this response Question 12 of 33 command option

Explanation / Answer

to be reported as current liability it should be probable and can be estimated in terms of amount since it is possible but not probable it should be disclosed in notes Answer-report the potential liability in the footnotes to the financial statements

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