Answered: to refer to the degree of uncertainty…

to refer to the degree of uncertainty that the future economic benefits associated with the item will flow to or from the entity.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 2Q

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Question

TRUE OR FALSE

9. The concept of probability is used in the recognition criteria
to refer to the degree of uncertainty that the future economic
benefits associated with the item will flow to or from the entity.

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