The FASB and the IASB Are Reconsidering the Role of Uncertainty

question 221

Multiple Choice

The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities.Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability.U.S.GAAP does not specify a minimum probability level, although the rule-of-thumb in practice is approximately _____ percent.

• A)50
• B)60
• C)70
• D)80
• E)90

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