Final answer:
Disclosure notes are required for lawsuits A, B, and C according to accounting principles concerning contingencies, to inform users of the financial statements about potential liabilities. However, given the multiple choice answers, the closest correct option is that a disclosure note is required for lawsuits B and C.
Step-by-step explanation:
According to accounting principles and standards, specifically those concerning contingencies, different treatments are required based on the likelihood of a loss and the ability to estimate that loss. When a loss is probable and the amount can be reasonably estimated, the loss should be recorded as an expense and a liability. When a loss is probable but cannot be reasonably estimated, or if a loss is reasonably possible (whether it can be estimated or not), a disclosure note is required to inform the financial statement users of the contingency.
Therefore, for Lawsuit A, where the loss is probable but the amount cannot be reasonably estimated, and for Lawsuit C, where the loss is reasonably possible and can be reasonably estimated, disclosure notes are required. Lawsuit B, where the loss is reasonably possible but cannot be estimated, would also typically require a disclosure note. This is to ensure that the financial statements provide a complete picture of the organization's potential liabilities.
As such, the correct statement is that a disclosure note is required for lawsuits A, B, and C. However, since the options provided do not include this exact choice, the closest correct option within the provided multiple choice answers would be: A disclosure note is required only for lawsuits B and C.