Estimations Are Frequently Made in the Income Statement in Relation

question 39

Multiple Choice

Estimations are frequently made in the income statement in relation to items such as bad debts,inventory obsolescence,an asset's useful life,and the expected pattern of consumption of economic benefits of depreciable assets.The effect of these estimations on the income statement is to:

• A) Increase the variability of profits.
• B) Make the statement unreliable.
• C) Reduce the relevance of the profit figures reported.
• D) All of the given answers.
• E) None of the given answers.

---

Definitions:

Anterior Skin

The front part of the skin, often referring to the skin located on the front part of the body.

Posterior Skin

The skin on the back or rear part of the body.

Acidosis

A medical condition in which the body fluids contain too much acid, often due to kidney failure or prolonged lack of oxygen.

Sweet And Fruity

A description often used for aromas, flavors, or tastes that are reminiscent of sugar and fresh fruit.