Loss contingency to accrue


Mayberry Co. has a loss contingency to accrue. The loss amount 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 amount of loss accrual should be

a. the maximum of the range

b. the minimum of the range

c. zero

d. the mean of the range.

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Accounting Basics: Loss contingency to accrue
Reference No:- TGS091185

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