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AASB 108 Requires That Changes to Accounting Estimates Be Dealt

question 9

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AASB 108 requires that changes to accounting estimates be dealt with prospectively.This means that the effect of a past overestimate of doubtful debts expense is:


Definitions:

Total Revenue

The total amount of money received by a company for goods or services sold, before any expenses are subtracted.

Marginal Cost

The additional cost incurred from the production of one additional unit of a good or service.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a good or service.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

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