Question $1(0\mathrm{.}5$ points$)$

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Which of the following statemenls concerning contingencies is correc?

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.

II only

if and in

II$,$ III, and IV

$1,11,111$ and NV