The 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) the likelihood of occurrence of 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

The FASB adopted these terms to account for the varying degrees of likelihood regarding the occurrence of future events, acknowledging the uncertainty inherent in predicting future outcomes.

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