Changes in Accounting Estimates Are Based on

question 23

Multiple Choice

Changes in accounting estimates are based on

• A)information available from the use of hindsight.
• B)information available at the time financial statements are prepared.
• C)providing comparable information in the financial statements.
• D)low quality of professional judgment being exercised.

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Definitions:

Financing

The act of providing funds for business activities, making purchases, or investing, through various means such as loans, equity, credits, or grants.

Property

Assets or possessions that are owned by an individual or entity, which can include real estate, intellectual property, and personal property.

Revolving Credit Agreement

A credit facility allowing a company to borrow up to a predetermined limit, repay, and borrow again.

Line of Credit

A credit facility extended by a bank or financial institution to a government, business, or individual customer that enables the customer to draw on the funds when needed.