Monday, December 26, 2011

Isnt objectivity violated when estimates are used in bookkeeping and accounting?

The use of estimates does not necessarily violate
objectivity. If it is not possible to determine the exact amount of
an expense and/or liability within a reasonable time, estimates may
be necessary. In that situation, objectivity is met when the
estimated amounts are similar to the amounts that another
professionally-trained person would also compute with

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