Assuming proper accounting disclosure is used, a large, extraordinary loss has wh Multiple Choice O O More information is needed to determine the effect. It lowers it. It raises it. It has no effect.

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

True False Underwriters are persons or institutions to whom the proceeds of the policy are paid if a loss occurs.

.    In determining the amount of a provision, a company using IFRS should generally measure: a.   using the midpoint of the range between the lowest possible loss and the highest possible loss. b.   using the minimum amount of the loss in the range. c.   using the best estimate of the amount of the loss expected to occur. d.   using the maximum amount of the loss in the range.

When is a contingent liability is reported?   Select one: when the likelihood of the loss is reasonably possible and a range of outcomes can be estimated  when the future events will possibly occur, and the amount of the loss is material when the amount of the loss can be reasonably estimated when the likelihood of the loss is probable and the amount of the loss can be reasonably estimated