FASB Established the Use of the Terms "Probable," "Reasonably Possible

question 10

Multiple Choice

FASB established the use of the terms "probable," "reasonably possible," and "remote." It adopted these terms because

• A) the available statistical techniques are not exact enough
• B) the likelihood of ccurrence of future events can vary over a wide range
• C) future gains are not easy to estimate
• D) unnecessary estimates should not be recorded in the financial records

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Definitions:

Phobia of Dirt

An intense, irrational fear of dirt or contamination, often leading to avoidance behaviors and distress in affected individuals.

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states or identities in an individual, each with its own pattern of perceiving and interacting with the environment.

Bipolar Disorder

A mental health condition characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Checking Rituals

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession, often seen in Obsessive-Compulsive Disorder.