A Loss Contingency Which Is Remote and Cannot Be Reasonably

question 85

Multiple Choice

A loss contingency which is remote and cannot be reasonably estimated:

• A) Must be disclosed in a note to the financial statements.
• B) May be disclosed in a note to the financial statements.
• C) Must be reported in the body of the financial statements.
• D) Is permitted to be reported in the body of the financial statements.

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Definitions:

Column Proportion

The ratio of a particular value's frequency to the total number of data points in its column within a table.

Somewhat Proficient

Describes a level of skill or competence that is moderate or satisfactory but not complete or expert.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Random Variable

An element whose values represent numerical results from a stochastic occurrence.