Monday, December 26, 2011

Are estimates allowed in bookkeeping?

While bookkeeping involves mostly precise amounts from sales
and purchase invoices, cash receipts and checks written, etc. there
are situations when estimates need to be entered. This is
especially true when monthly financial statements are prepared
under the accrual method of accounting. For instance, the monthly
bookkeeping entries for depreciation, property taxes, utilities,
fringe benefits

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