Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles?

Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles?



a. Amount of loss is reasonably estimable and event occurs infrequently.
b. Amount of loss is reasonably estimable and occurrence of event is probable.
c. Event is unusual in nature and occurrence of event is probable.
d. Event is unusual in nature and event occurs infrequently.


Answer: Amount of loss is reasonably estimable and occurrence of event is probable


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