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.

Analyze the fiscal role of government lotteries.

Recognize the role of taxes and finance at the local and state levels.

Understand how state and local spending is allocated, particularly in education.

Comprehend the principles and types of taxation systems, including regressive, progressive, proportional, and benefits-received taxes.

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Definitions:

Securities Act of 1933

A U.S. law enacted to ensure greater transparency in financial statements and to reduce fraud and manipulation in the securities markets.

Prospectus

A formal legal document that provides details about an investment offering for sale to the public, often containing data about the company's operations, financial condition, and management.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.

CFA Institute Standards

Ethical and professional guidelines set by the CFA Institute that provide a framework for the conduct of investment professionals.