Which of the following would not be considered when evaluating whether to record a contingent loss for pending litigation?
A) the type of litigation involved
B) the ability to make a reasonable estimate of the amount of the loss
C) time period in which the underlying cause of action occurred
D) the probability of an unfavorable outcome

Question

Quizplus · Accepted Answer

The type of litigation involved is not directly relevant to the decision of whether to record a contingent loss. The focus is on the probability of an unfavorable outcome, the ability to estimate the loss, and the timing of the cause of action.

Which of the Following Would Not Be Considered When Evaluating