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Because Accounting Measures Should Be Verifiable,liabilities Should Not Be Estimated

question 110

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Because accounting measures should be verifiable,liabilities should not be estimated.


Definitions:

Annual Interest

The amount of interest earned or paid over a one-year period on investments, loans, or savings.

Rule of 70

A formula used to estimate the number of years required for an investment or population to double, given a fixed annual growth rate.

Interest Rate

The sum charged by a lender, as a fraction of the principal, for the privilege of accessing assets by a borrower.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

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