When does a company record an asset related to a gain contingency? a. When future events will possibly occur and the amount can be reasonably estimated. b. When there is a remote chance that future events will occur and the amount can be reasonably estimated. c. When future events are probable to occur and the amount can be reasonably estimated.
When does a company record an asset related to a gain contingency? a. When future events will possibly occur and the amount can be reasonably estimated. b. When there is a remote chance that future events will occur and the amount can be reasonably estimated. c. When future events are probable to occur and the amount can be reasonably estimated.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 24GI
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When does a company record an asset related to a gain contingency?
a. When future events will possibly occur and the amount can be reasonably estimated.
b. When there is a remote chance that future events will occur and the amount can be reasonably estimated.
c. When future events are probable to occur and the amount can be reasonably estimated.
d. Gain contingencies are not recorded.
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