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NEW QUESTION: 1
A. Option C
B. Option B
C. Option A
D. Option D
Answer: D
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. Accounting estimates measure the effects of past transactions or events that cannot be determined in
a timely cost-effective manner.
B. Accounting estimates measure the effects of the present status of an asset or liability.
C. An accounting estimate is an approximation of an account pending the outcome of a future event.
D. An accounting estimate is an approximation of past events that can be determined on a timely cost
effective basis.
Answer: D
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).