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NEW QUESTION: 1
A. Option C
B. Option D
C. Option A
D. Option B
Answer: B
NEW QUESTION: 2
HOTSPOT
A company is considering whether to purchase Microsoft Office 2013 preinstalled on a new computer or through a Volume Licensing agreement.
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
Answer:
Explanation:
NEW QUESTION: 3
Which of the following is not true about accounting estimates?
A. An accounting estimate is an approximation of an account pending the outcome of a future event.
B. An accounting estimate is an approximation of past events that can be determined on a timely cost
effective basis.
C. Accounting estimates measure the effects of past transactions or events that cannot be determined in
a timely cost-effective manner.
D. Accounting estimates measure the effects of the present status of an asset or liability.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. An accounting estimate pertains to determining the approximation of past events that
cannot be determined on a timely, cost-effective basis. If the effect of a past event can be determined on a
timely, cost-effective basis, there would be no reason to make an estimate.
Choices "A", "B", and "C" are incorrect. Accounting estimates may:
A. Measure the effects of past transactions that cannot be determined in a timely cost-effective manner.
B. Measure the effects of the present status of an asset or liability.
C. Be used to approximate an account pending the outcome of a future event (e.g., uncollectible accounts
receivable).