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:

Internal Locus Of Control

Refers to the belief that individuals have significant control over their life events and outcomes through their actions and decisions.

Emotional Contagion

The phenomenon where individuals catch or adopt the emotions of those around them, whether consciously or unconsciously.

Emotional Framing

The use of language and messaging designed to elicit emotional responses, influencing how information is perceived and processed.

Business Judgment Rule

A legal principle that protects corporate directors or officers from liability for decisions made in good faith and believed to be in the best interest of the company.