Purchase Solution

Provide some examples of accounting estimates

Not what you're looking for?

Ask Custom Question

1-Provide some examples of accounting estimates. What is the "preferred" approach for changes in accounting estimates?
2-What is the proper treatment for reporting a change in entity?
3-In recent years, the Wall Street Journal has indicated that many companies have changed their accounting principles. What are the major reasons why companies change accounting methods?
4-What are changes of accounting principle? Which does FASB require companies to use?

Purchase this Solution

Solution Summary

The expert provides some examples of accounting estimates.

Solution Preview

NOTE: These are my own words. BrainMass prefers OTAs provide posts in their own words rather than quoting from references.

Accounting

1-Provide some examples of accounting estimates. What is the "preferred" approach for changes in accounting estimates?

First, accounting estimates are necessary in order for business organizations and other entities to be able to provide a complete picture of its operations and financial position over a certain period of time. Accounting estimates are a result of the uncertainties involved in doing business which make items or financial transactions reported in the financial statements can't be measured accurately. Examples of accounting estimates are allowance for bad debts and bad debts expense, accumulated depreciation and depreciation expense, and amortization expense among others. Other examples with regard to the depreciation of property, plant and equipment are depreciable lives of assets and salvage value.

Generally accepted accounting principles require that changes in accounting estimates be ...

Purchase this Solution


Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Operations Management

This quiz tests a student's knowledge about Operations Management