Which of the Following Does Not Require an Entity to Use

question 6

Multiple Choice

Which of the following does not require an entity to use estimates when preparing its financial statements?

• A) The original purchase price of an asset
• B) Provision for employee benefit such as long-service leave
• C) Doubtful debts expense
• D) Depreciation expense

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Definitions:

Holder-of-Record Date

The specific date on which a company determines its shareholders' list for dividend distribution or other rights.

Record Date

The date set by a corporation to determine the shareholders eligible to receive a dividend or vote at a shareholders' meeting.

General Cash Offer

Is an offer made by a company to purchase shares from all shareholders, typically for the purpose of gaining control of the company.

Cash Offer

A proposal to buy an asset or security with a specific amount of cash, rather than through a finance or stock exchange.