A Probable Loss Contingency Is Reasonably Estimated Within a Range

question 32

Multiple Choice

A probable loss contingency is reasonably estimated within a range of possible amounts.No amount within the range is a better estimate than any other amount within the range.The amount that should be accrued should be

• A)zero
• B)the lower amount of the range
• C)the upper amount of the range
• D)the average amount within the range

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Definitions:

Human Resources

The division of a company focused on activities related to employees, including hiring, training, and benefits.

Downsizing

Process of reducing the number of employees within a company by eliminating jobs.

Outsourcing

Using outside vendors—contracting work out to another party—for the production of goods or fulfillment of services and functions previously performed in house.

Incentive Compensation

A form of payment designed to motivate and reward employees for achieving certain performance goals.