Question

Correctly match each scenario relating to probable future losses that exist at the balance sheet date with the correct accounting treatment._____Amount of future loss cannot be reasonably estimated_____Amount of future loss can be reasonably estimateda. Accrueb. Disclose only

Answer 1

Answer and Explanation:

In case when the company expected that there is any losses that arise in the future and the same is to be presented in the balance sheet by considering the accurate accounting treatment so the terms that should be used is as follows

For the future loss that does not reasonably predicted should be disclosed only

And, the future loss that can be reasonably predicted should accrue

The same is to be considered