Which of the following is a category that does not reflect the contingent nature of losses and the guiding criteria organized around probability of outcomes as provided by the FASB?
A)Guaranteed.
B)Reasonably possible.
C)Remote.
D)Probable.

Question

Quizplus · Accepted Answer

The category of "guaranteed" does not reflect the contingent nature of losses because it implies a certainty of loss, rather than a possibility or probability of loss. The other categories (reasonably possible, remote, and probable) reflect varying degrees of likelihood or probability of the loss occurring.

Which of the Following Is a Category That Does Not