QuestionJuly 29, 2025

A potential legal claim is recorded only if the claim can be reasonably estimated. only if the claim cannot be reasonably estimated but is reasonably possible. only if payment for damages is probable and the amount can be reasonably estimated. only if payment for damages is reasonably possible and the amount is reasonable.

A potential legal claim is recorded only if the claim can be reasonably estimated. only if the claim cannot be reasonably estimated but is reasonably possible. only if payment for damages is probable and the amount can be reasonably estimated. only if payment for damages is reasonably possible and the amount is reasonable.
A potential legal claim is recorded
only if the claim can be reasonably estimated.
only if the claim cannot be reasonably estimated but is reasonably possible.
only if payment for damages is probable and the amount can be reasonably estimated.
only if payment for damages is reasonably possible and the amount is reasonable.

Solution
3.5(323 votes)

Answer

Only if payment for damages is probable and the amount can be reasonably estimated. Explanation 1. Identify the criteria for recording a legal claim A potential legal claim is recorded only if payment for damages is probable and the amount can be reasonably estimated. This aligns with accounting principles where liabilities are recognized when they are both probable and estimable.

Explanation

1. Identify the criteria for recording a legal claim<br /> A potential legal claim is recorded only if payment for damages is probable and the amount can be reasonably estimated. This aligns with accounting principles where liabilities are recognized when they are both probable and estimable.
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