Gain contingencies are usually recognized in the income statement when
A) Realized
B) Occurrence is reasonably possible, and the amount can be reasonably estimated
C) Occurrence is probable and the amount can be reasonably estimated
D) The amount can be reasonably estimated

Question

Quizplus · Accepted Answer

Gain contingencies are typically recognized in the income statement when they are realized, not merely when they are probable or estimable. This conservative approach helps ensure that financial statements do not overstate the financial position of a company.

Gain Contingencies Are Usually Recognized in the Income Statement When