Under FASB Rules, a Material Loss Contingency Must Be Accrued

question 35

True/False

Under FASB rules, a material loss contingency must be accrued if it is both "probable" and "reasonably estimable."

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Definitions:

Cluster A

A classification within the Diagnostic and Statistical Manual of Mental Disorders (DSM), referring to personality disorders characterized by odd, eccentric thinking or behavior; includes paranoid, schizoid, and schizotypal personality disorders.

Paranoid

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, typically elaborated into an organized system.

Schizotypal

A personality disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Psychoticism

Extreme openness to experience.