Red Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If expropriation is probable, a loss contingency should be:a. Disclosed but not accued as a liability

b. Disclosed and accued as a liability

c. Accued as a liability but not disclosed

d. Neither accrued as liability nor disclosed

Question

India Mcgrath

Business

30 August, 16:04

Red Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If expropriation is probable, a loss contingency should be:a. Disclosed but not accued as a liability

b. Disclosed and accued as a liability

c. Accued as a liability but not disclosed

d. Neither accrued as liability nor disclosed

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Answers (1)

Know the Answer?

Harmony Watts · Answer 1

b. Disclosed and accued as a liability

Explanation:

Expropriation occurs when the government or an authority takes property from its owner to use it publicly.