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 (reported on financial statements) 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.

21) A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt:

A) Is callable by the creditor.

B) Is secured by adequate collateral.

C) Will be refinanced with stock.

D) Will be refinanced with debt.

22) At times, businesses require advance payments from customers that will be applied to the purchase price when goods are delivered or services provided. These customer advances represent:

A) Liabilities until the product or service is provided.

B) A component of shareholders' equity.

C) Long-term assets until the product or service is provided.

D) Revenue upon receipt of the advance payment.