One of the Basic Principles of Accounting Is Objectivity

question 73

Essay

One of the basic principles of accounting is objectivity.Why,then,do businesses estimate their uncollectible accounts expense instead of waiting to see which accounts receivable will not be collected.That would be objective,wouldn't it?

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Definitions:

Sensory Registers

The initial processing systems that receive and hold sensory information from the environment for very short periods of time.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Retention

The ability to keep or hold onto information or knowledge over time.

Recognition

The ability to identify previously encountered items, events, or people, demonstrating memory of those items, events, or people.