I. A provision is a present obligation which may either be legal or constructive. II. Even if a provision is a result of past event, future events may be used to estimate it. O a. Only Statement I is true. b. Only Statement Il is true. c. Both Statements I and II are true. O O

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter11: Investor Losses
Section: Chapter Questions
Problem 25DQ
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9. Consider the following
statements: *
I. A provision is a present obligation which may either be legal or constructive.
II. Even if a provision is a result of past event, future events may be used to estimate it.
a. Only Statement I is true.
b. Only Statement Il is true.
c. Both Statements I and II are true.
d. Neither Statement I nor II is true.
Transcribed Image Text:9. Consider the following statements: * I. A provision is a present obligation which may either be legal or constructive. II. Even if a provision is a result of past event, future events may be used to estimate it. a. Only Statement I is true. b. Only Statement Il is true. c. Both Statements I and II are true. d. Neither Statement I nor II is true.
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