A Company Should Accrue a Loss Contingency Only If the Likelihood

question 104

Multiple Choice

A company should accrue a loss contingency only if the likelihood that a liability has been incurred is:

• A) More likely than not and the amount of the loss is known.
• B) At least reasonably possible and the amount of the loss is known.
• C) At least reasonably possible and the amount of the loss can be reasonably estimated.
• D) Probable and the amount of the loss can be reasonably estimated.

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Definitions:

Behavioural Tolerance

Through the principles of classical conditioning, cues in the environment can become conditioned stimuli to the effects of drug use. These cues cause the individual to anticipate the drug effects so that when the drug is actually administered the effects are diminished. Tolerance, or the need for a greater amount of drug for the same effect, is greatest when the conditioned environmental cues are present.

Severely Impaired

A condition in which an individual experiences significant barriers or limitations in physical or mental functioning.

Markers of Vulnerability

Indicators or signs that a person or population may be more susceptible to harm or adverse conditions due to various factors.