Significant Accounting Estimate
Not what you're looking for?
What is an example of a significant accounting estimate?
What is the importance of these estimates?
How do ethics play into the decision making process?
Which financial statements include significant accounting estimates? Why?
Purchase this Solution
Solution Summary
The solution looks at significant accounting estimates and explains the importance of these estimates and includes a take on the ethics involved.
Solution Preview
One example of a significant accounting estimate is a bad debt allowance on receivables. A company selling goods or services on credit knows from past transaction history that a certain percentage of its receivables will not be collectible and must be estimated and otherwise accounted for.
The importance of these type of estimates is that a truer representation of the financial health of the firm is given relative to not making such estimates. For example, let's imagine a firm in an industry where typical bad debt ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.