The FASB Established the Use of the Terms "Probable," "Reasonably

Multiple Choice

The FASB established the use of the terms "probable," "reasonably possible," and "remote." It adopted these terms because

A) the available statistical techniques are not exact enough.
B) the likelihood of occurrence of future events can vary over a wide range.
C) future gains are not easy to estimate.
D) unnecessary estimates should not be recorded in the financial records.