Judgments Are Important in Determining Which Type of Estimates Used

question 44

Multiple Choice

Judgments are important in determining which type of estimates used by accountants?

• A)bad debt expense
• B)earnings per share
• C)net income
• D)computation of gains and losses

---

Definitions:

Fabrication

The process of constructing or manufacturing an item from raw or semi-finished materials.

Assembly Departments

Sections within a manufacturing facility where components are assembled into final products.

Residual Income

The income that an individual or business has after all expenses and costs, including capital costs, have been subtracted.

Investment Opportunity

A potential financial venture, project, or mechanism expected to yield returns or benefits.