Which of the Following Circumstances Would Require Recording an Accrual

question 41

Multiple Choice

Which of the following circumstances would require recording an accrual for a loss contingency under current generally accepted accounting principles?

• A) Event is unusual in nature and occurrence of event is probable
• B) Event is unusual in nature and event occurs infrequently
• C) Amount of loss is reasonably estimable and occurrence of event is probable
• D) Amount of loss is reasonably estimable and event occurs infrequently

---

Definitions:

Difference Of Cubes

A formula expressing the subtraction of two cubed numbers as a product of a binomial and a trinomial, specifically a^3 - b^3 = (a - b)(a^2 + ab + b^2).

Trinomial

A polynomial with three terms, typically of the form ax^2 + bx + c.

Difference Of Two Squares

A mathematical expression of the form \(a^2 - b^2\), which can be factored into \((a + b)(a - b)\).

Surface Area

The total area that the surface of a three-dimensional object occupies, measured in square units.