Which of the Following Are Categories That Do Not Reflect

question 174

Multiple Choice

Which of the following are categories that do not reflect the contingent nature of losses and the guiding criteria organized around probability of outcomes as provided by the FASB?

• A) Guaranteed.
• B) Reasonably possible.
• C) Remote.
• D) Probable.

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Definitions:

Cash Dividend

A payment made in cash to shareholders that is derived from a company's profits or reserves.

Times Interest Earned Ratio

A financial metric assessing a company’s ability to meet its interest obligations from its operating income.

Income Tax Payments

Income tax payments are the amounts of money a company or individual must pay to the government, based on the income earned over a tax period.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debts.