A Contingency Can Be Accrued When

question 66

Multiple Choice

A contingency can be accrued when

• A)it is certain that funds are available to settle the disputed amount.
• B)an asset may have been impaired.
• C)the amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability incurred.
• D)it is probable that an asset has been impaired or a liability incurred even though the amount of the loss cannot be reasonably estimated.

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Definitions:

Ounces

A unit of weight typically used in the United States and the United Kingdom, equal to one-sixteenth of a pound.

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a confidence interval within which the true population parameter is expected to lie.

Confidence Level

The degree of certainty or probability that the values of parameters fall within a specified range in the context of statistical analysis.

Sample Size

The number of observations or replicas included in a statistical sample.