Which of the Following Statements Concerning Contingencies Is Correct

Which of the following statements concerning contingencies is correct?

I. Gain contingencies are recorded if they are probable and reasonably estimable.
II. Unredeemed frequent flyer mileage is an example of a loss contingency.
III. A loss contingency is a form of off-balance sheet financing.
IV. Loss contingencies are not recognized unless there is a greater than 95% chance they will be realized.

A) I, II, III, and IV
B) II, III, and IV
C) II and III
D) II only

Correct Answer:

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