Practice prompt · Q:current-liabilities-refinancing-and-contingencies/loss-contingency-range-001

Measure a loss contingency stated as a range

Tests whether the learner accrues the low end when no amount in a range is a better estimate.

Updated Aug 18, 2026 Review due Nov 18, 2026
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Counsel advises that a loss is probable and that the amount will fall between $300,000 and $900,000. No amount within the range is a better estimate than any other.

The calculation checks the recognized low end and the remaining exposure. It does not establish the supplied probability conclusion or range.

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Answer: a

Choice a. Accrue the low end and disclose the rest of the range.