A Company Should Accrue a Loss Contingency Only If the Likelihood

question 104

Multiple Choice

A company should accrue a loss contingency only if the likelihood that a liability has been incurred is:

• A) More likely than not and the amount of the loss is known.
• B) At least reasonably possible and the amount of the loss is known.
• C) At least reasonably possible and the amount of the loss can be reasonably estimated.
• D) Probable and the amount of the loss can be reasonably estimated.

---

Definitions:

Wrongfully Received

Obtaining assets or benefits without legal right or justification.

Infringer

An individual or entity that violates or encroaches upon someone else's rights, especially intellectual property rights.

Service Marks

Symbols, names, or logos used by companies to identify and distinguish their services from those of others.

Trademarks

Symbols, words, or phrases legally registered or established by use as representing a company or product.