The Probability Threshold for Dealing with Uncertainty in Loss Contingencies

question 33

True/False

The probability threshold for dealing with uncertainty in loss contingencies uses the terms likely and unlikely.

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Definitions:

Accounting Assumption

Fundamental beliefs or principles that guide the preparation of financial statements, such as going concern, accrual basis, and consistency.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Going Concern

An accounting principle that assumes a company will continue to operate and fulfill its obligations in the foreseeable future.

Going Concern Assumption

An accounting principle assuming that a company will continue in operation for the foreseeable future.