Under what condition should a pending lawsuit be recognized as a liability on a company's balance sheet?(a) The outcome is reasonably possible.(b) The outcome is probable.(c) The amount can be reasonably estimated.(d) Both (b) and (c).

(d) Both (b) and (c).

Explanation:

A liability can be defined as a future financial sacrifice or obligation that are economically beneficial, which are being made by a company to another business firms with respect to past transactions or events. This financial sacrifice are generally being reported on a company's balance sheet.

Mathematically, liability is given by the formula;

Hence, the condition under which a pending lawsuit should be recognized as a liability on a company's balance sheet is if;

1. The outcome is probable: this simply means when the outcome of a pending lawsuit is most likely to be true, the financial litigation is considered to be a liability.

2. The amount can be reasonably estimated: the amount being owed or in question can be obtained by estimation.

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed