If a Company Can Determine a Reasonable Estimate of an Expected

question 74

Multiple Choice

If a company can determine a reasonable estimate of an expected loss from a lawsuit and it is probable it will lose the suit, it should

• A)disclose the basic facts regarding the suit in the notes to its financial statements.
• B)accrue the loss.
• C)neither disclose in the notes nor accrue the loss.
• D)pay the amount estimated.

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