Question: A loss is recorded as an expense if it is reasonably possible that the loss occurred, even though it is not certain. Thus, if a

A loss is recorded as an expense if it is reasonably possible that the loss occurred, even though it is not certain. Thus, if a customer sues Hall Company in 2011, and if it seems reasonably possible that Hall Company will lose the lawsuit, the estimated loss is recorded as an expense [in 2011 / when the lawsuit is settled]. This is in accordance with the concept that requires expenses to be recognized when they are reasonably possible, which is the c _________ m concept.

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