When a Contingent Liability Exists the Likelihood for Loss Can

question 78

Multiple Choice

When a contingent liability exists the likelihood for loss can be evaluated as probable,reasonably possible,or remote.A probable loss is

• A)a loss where the chance of occurrence is slight
• B)a loss that is likely to occur
• C)a loss where the chance of occurrence is moderate
• D)falls between the chance of occurrence is slight and a loss is likely to occur

---

Definitions:

Cowan (2010)

Refers to research or findings by cognitive psychologist Nelson Cowan regarding cognitive development, specifically focusing on the theory of working memory.

Acoustic Encoding

A cognitive process that allows information to be remembered as a sequence of sounds.

Sensory Encoding

The process by which sensory information is converted into a form that the brain’s nervous system can understand and process.

Semantic Encoding

The process of converting information into a meaningful context, allowing for better retention and recall.