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Which of the following would not require the company to record an accrual on the balance...

Which of the following would not require the company to record an accrual on the balance sheet? Select one: A. The company owes $43,000 in wages to its employees for the previous two weeks. B. Interest will be paid when a note payable matures in the following accounting period C. Management believes a lawsuit against the company is meritless because they have never had a single complaint about dangerous side effects of their drug in two years. D. The company knows that they will be fined for pollution as a result of their manufacturing process and can estimate the amount of the obligation. E. None of the above

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Answer #1
Management believes a lawsuit against the company is meritless because they have never had a single complaint about dangerous side effects of their drug in two years.
As the chances of occurrence is not probable and the amount cannot be reasonably estimated, it does not require accrual on the balance sheet.
Option C is correct
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