Which of the Following Is Not True About Accounting Estimates

question 33

Multiple Choice

Which of the following is not true about accounting estimates?

• A) Accounting estimates measure the effects of past transactions or events that cannot be determined in a timely cost-effective manner.
• B) Accounting estimates measure the effects of the present status of an asset or liability.
• C) An accounting estimate is an approximation of an account pending the outcome of a future event.
• D) An accounting estimate is an approximation of past events that can be determined on a timely cost effective basis.

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Definitions:

Respondeat Superior

A rule of law which makes an employer or principal accountable for an employee's or agent's wrongful actions, provided those actions were performed during the course of their employment or agency.

Delegatee

A person or party to whom duties or powers are delegated by another, often in a legal or organizational context.

Mortgages

Loans secured by real property, typically real estate, that borrowers use to purchase property or borrow against the value of property they already own.

Leases

Legal agreements that grant the right to use or occupy property for a specified period of time in exchange for rent.