Part A: A company should accrue a loss contingency only if the likelihood that a liability has been incurred is:
A. At least reasonably possible and the amount of the loss is known.
B. Probable and the amount of the loss can be reasonably estimated.
C. At least reasonably possible and the amount of the loss can be reasonably estimated.
D. More likely than not and the amount of the loss is known.
Part B:
In a period when costs are rising and inventory quantities are stable, the inventory method that would result in the highest ending inventory is:
A. LIFO.
B. Weighted average.
C. FIFO.
D. Moving average.