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Provide a Brief Example to Illustrate That Externally Reported Financial

question 11

Essay

Provide a brief example to illustrate that externally reported financial accounting information must be based in part on estimates,judgments,and assumptions.


Definitions:

Futures Contracts

Agreements to buy or sell an asset at a predetermined future date and price.

Spot Price

The present market rate at which a specific asset like a commodity, currency, or security is available for purchase or sale with immediate delivery.

Sale Of Corn

typically refers to the transaction or process of selling the agricultural product corn, which can be influenced by various factors such as market demand, quality, and harvest yield.

Spot Price

The existing market value at which an asset is available for immediate purchase or sale.

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