Which of the Following Is Not True Regarding Accounting Estimates

question 90

Multiple Choice

Which of the following is not true regarding accounting estimates?

• A) Accounting estimates are based on management's knowledge and experience of past and current events.
• B) Accounting estimates are based on management's assumptions about conditions that are expected to exist and courses of action the company expects to take.
• C) Accounting estimates are based on both subjective and objective factors
• D) Because accounting estimates are based, in part, on management's knowledge and experience, they are not biased.

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Definitions:

Performance Incentive

A reward system designed to enhance motivation and improve worker productivity by providing bonuses or other benefits linked to achievement of specific goals.

Retention Tool

Strategies or practices employed by organizations to keep valuable employees and reduce turnover.

Productivity Measurement

The evaluation of the efficiency of a worker, machine, or system in converting inputs into useful outputs.

Evaluation System

A formal process used to assess the performance, effectiveness, or value of individuals, projects, or programs.