A company should accrue a loss contingency only if the likelihood that a liability has been incurred is:

A company should accrue a loss contingency only if the likelihood that a liability has been incurred is: 




A. More likely than not and the amount of the loss is known.
B. At least reasonably possible and the amount of the loss is known.
C. At least reasonably possible and the amount of the loss can be reasonably estimated.
D. Probable and the amount of the loss can be reasonably estimated.




Answer: D


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