Question

Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic Innovators. The litigation is in final appeal, and legal counsel advises that it is probable that Aviation Systems will win the lawsuit and be awarded somewhere between $6 and $10 million. Which of the following statement is true?

Answer 1

Gain contingencies are not recorded

Step-by-step explanation:

Aviation Systems must take into account that it is an uncertain situation that MAY result in a gain but is not garanteed.