Which of the following statements is true?
A)No loss contingencies should be disclosed if there is just a reasonable possibility of a loss.
B)Indirect guarantees should normally be accrued.
C)In the case of loss contingencies, accrual can be made even if the exact payee and payment date are not known.
D)Losses may be accrued for unasserted claims and other potential unfiled lawsuits.

Question

Quizplus · Accepted Answer

Accrual for loss contingencies can be made if it is probable that a liability has been incurred and the amount can be reasonably estimated, even if the exact payee and payment date are not known.

Which of the Following Statements Is True