When a contingent liability exists,the likelihood for loss can be evaluated as probable,reasonably possible,or remote.A reasonably possible loss is
A)a loss where the chance of occurrence is slight
B)a loss that is likely to occur
C)a loss where the chance of occurrence is moderate
D)falls between the chance of occurrence is slight and a loss is likely to occur

Question

Quizplus · Accepted Answer

A reasonably possible loss falls between the chance of occurrence being slight (remote) and likely to occur (probable). It means that while the likelihood of the loss happening is not high, it is still possible enough to require disclosure in financial statements.

When a Contingent Liability Exists,the Likelihood for Loss Can Be