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:

Essential Elements

Fundamental components or factors that are necessary for a specific process, activity, or system to function effectively.

Established Jointly

Refers to being set up or founded by two or more parties in collaboration.

Psychoanalysis

A therapeutic approach that focuses on exploring unconscious desires and conflicts as a means of understanding and resolving psychological disturbances.

Repression

A defense mechanism in which distressing thoughts and memories are unconsciously forced from the conscious mind to the unconscious.