If Two Different Accountants Were to Estimate the Percentage of Customers

question 64

Multiple Choice

If two different accountants were to estimate the percentage of customers who will NOT pay their accounts (bad debts) , they could arrive at different estimates. These differing estimates would affect the financial statements. Such differences in assessing estimates are due to

• A) Fraudulent financial reporting
• B) Errors in accounts and ledgers
• C) Disagreements in judgment
• D) Lack of internal controls

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