Estimates, Such as That of the Effectiveness of a Process

question 20

True/False

Estimates, such as that of the effectiveness of a process, are sometimes revised once the process is better defined and understood.

---

Definitions:

Expense Account

An account used to record the costs incurred by a business in the process of generating revenue, excluding direct materials and direct labor expenses.

Asset Account

An account on a company's balance sheet that represents the value of the assets owned.

Unearned Revenue

Unearned Revenue represents money received by a company for goods or services yet to be delivered or performed, considered a liability until the revenue is earned.

Liability Account

An accounting category used for recording debts or obligations that a company owes to others, typically excluding equity or ownership stakes.