Provisions for contingent losses are accrued because the likelihood of an unfavorable outcome is ________.
A)virtually certain
B)more likely than not
C)reasonably possible
D)more than remote

Question

Quizplus · Accepted Answer

Provisions for contingent losses are accrued when the likelihood of an unfavorable outcome is "more likely than not," meaning there is a greater than 50% chance of occurrence.

Provisions for Contingent Losses Are Accrued Because the Likelihood of an Unfavorable