An Approximation of a Monetary Amount in the Absence of a Precise

question 3

Multiple Choice

An approximation of a monetary amount in the absence of a precise means of measurement is known as ________.

• A)estimation uncertainty
• B)an accounting estimate
• C)management bias
• D)management's point estimate

---

Definitions:

Demand Instrument

A financial document, like a check or promissory note, that is payable on demand or presentation.

Time Instrument

A financial document that specifies payment to be made at a future date.

Payee

The individual or entity to whom a payment is to be made.

Drawee

A drawee is the party in a transaction, usually a bank, upon whom a check or draft is drawn and is responsible for paying the specified amount.