Question

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

Answer 1

Answer:

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.