When a contingent liability exists, the likelihood for loss can be evaluated as probable, reasonably possible, or remote. A remote loss is a loss where the chance of occurrence is slight a loss that is likely to occur a loss where the chance of occurrence is moderate falls between the chance of occurrence is slight and a loss is likely to occur
When a contingent liability exists, the likelihood for loss can be evaluated as probable, reasonably possible, or remote. A remote loss is a loss where the chance of occurrence is slight a loss that is likely to occur a loss where the chance of occurrence is moderate falls between the chance of occurrence is slight and a loss is likely to occur
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 8MC: Which of the following best describes a contingent liability that is likely to occur but cannot be...
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![When a contingent liability exists, the likelihood for loss can be evaluated as
probable, reasonably possible, or remote. A remote loss is
a loss where the chance of occurrence is slight
a loss that is likely to occur
a loss where the chance of occurrence is moderate
falls between the chance of occurrence is slight and a loss is likely to occur](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec363e2c-f846-4493-b4ed-b5529cf7b4ef%2Fe8abb51b-a844-41a0-90cb-2a66d38586ec%2F6kogiz_processed.png&w=3840&q=75)
Transcribed Image Text:When a contingent liability exists, the likelihood for loss can be evaluated as
probable, reasonably possible, or remote. A remote loss is
a loss where the chance of occurrence is slight
a loss that is likely to occur
a loss where the chance of occurrence is moderate
falls between the chance of occurrence is slight and a loss is likely to occur
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