Neer Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amount. The loss accrual should be
A) zero.
B) the maximum of the range.
C) the mean of the range.
D) the minimum of the range.

Question

Quizplus · Accepted Answer

According to accounting principles, when a loss can be estimated only within a range and no amount within that range is a better estimate than any other, the entity should accrue the minimum amount of the range.

Neer Co Has a Probable Loss That Can Only Be Reasonably