A provision for a contingent loss is considered to be probable if the probability of its occurrence is ________.
A)slight
B)more likely than not
C)virtually certain
D)reasonably possible

Question

Quizplus · Accepted Answer

A provision for a contingent loss is considered to be probable if it is more likely than not to occur. This means a probability of more than 50%. Therefore, option B - more likely than not - is the best choice. Options A, C, and D are incorrect because slight probability, virtual certainty, and reasonable possibility do not meet the threshold of being more likely than not.

A Provision for a Contingent Loss Is Considered to Be