12. (4 points) Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy? (AC 2) A) Going-concern assumption. B) Monetary unit assumption C) Economic entity assumption.- D) Periodicity assumption. - (LE 6) 13. (4 points) A contingency can be accrued when A) an asset may have been impaired. B) it is probable that an asset has been impaired or a liability incurred even though the amount of the loss cannot be reasonably estimated. C) it is certain that funds are available to settle the disputed amount. D) the amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability incurred. 14. (4 points) Which of the following is true about lower-of-cost-or-market? (A 16) A) It usually understates assets. B) It can increase future income. C) It is inconsistent because losses are recognized but not gains. D) All of these