FASB established the use of the terms "probable, " "reasonably possible, " and "remote." It adopted these terms because
A)the available statistical techniques are not exact enough
B)future events can vary over a wide range
C)future gains are not easy to estimate
D)unnecessary estimates should not be recorded in the financial records

Question

Quizplus · Accepted Answer

FASB established these terms to provide a standardized way for companies to communicate the likelihood of future events affecting financial statements. It recognizes that future events can vary over a wide range and the terms allow for companies to communicate the likelihood of those events in a consistent manner.

FASB Established the Use of the Terms "Probable, " "Reasonably