Under GAAP, the Rule for When a Loss Contingency Must

question 27

Multiple Choice

Under GAAP, the rule for when a loss contingency must be accrued is that it must be

• A) At least remotely possible, and reasonably estimable
• B) At least reasonably possible, and reasonably estimable
• C) Probable, and reasonably estimable
• D) Probable, even if it is not reasonably estimable

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Definitions:

Synthetic Steps

The individual chemical reactions and procedures performed in sequence to synthesize a desired compound from simpler starting materials.

Transformation

In a scientific context, transformation refers to the process of change or conversion from one state, form, or property to another, often used in genetics, chemistry, and physics.

HBr

Hydrogen bromide, a diatomic molecule consisting of hydrogen and bromine, widely used in organic synthesis to add bromine across double bonds or to open epoxides.

NaCN

Sodium cyanide, a highly toxic compound used in industrial processes such as mining and chemical synthesis.