An Estimated Loss from a Loss Contingency Should Be Accrued

Multiple Choice

An estimated loss from a loss contingency should be accrued when

A) It is probable at the date of the financial statements that a loss has been incurred and the amount of the loss can be reasonably estimated
B) The loss has been incurred by the date of the financial statements and the amount of the loss may be material
C) It is probable at the date of the financial statements that a loss has been incurred and the amount of the loss may be material
D) It is probable that a loss will be incurred in a future period and the amount of the loss can be reasonably estimated