Financial Statement Note Disclosure Is Required for Material Potential Losses

question 127

Multiple Choice

Financial statement note disclosure is required for material potential losses when the loss is at least reasonably possible:

• A) Only if the amount is known.
• B) Only if the amount is known or reasonably estimable.
• C) Unless the amount is not reasonably estimable.
• D) Even if the amount is not reasonably estimable.

---

Definitions:

Absolute Threshold

The minimum amount of sensory stimulation that can be detected 50% of the time.

Difference Threshold

A measure of the smallest increase or decrease in a physical stimulus that is required to produce a difference in sensation that is noticeable 50% of the time.

Psychophysical Threshold

The minimum level of stimulus intensity perceived by the sensory system.

Just Noticeable Difference

The smallest difference in stimulation required to detect a change in sensory inputs, also known as the difference threshold.