B is corrent. "Contingency" designates a claim or right whose existence is uncertain but which may become valid property rights eventually. Accountants have adopted a conservative policy in the area of gain contingencies. Per ASC Topic 450, gain contingencies should not be reflected in the accounts since to do so might be to recognize revenue prior to its realization.
A is incorrect. Per ASC Topic 450, gain contingencies should not be reflected in the accounts since to do so might be to recognize revenue prior to its realization.
C is incorrect. Per ASC Topic 450, gain contingencies should not be reflected in the accounts since to do so might be to recognize revenue prior to its realization.
D is incorrect. Per ASC Topic 450, gain contingencies should not be reflected in the accounts since to do so might be to recognize revenue prior to its realization.
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