Which of the Following Is Not Normally Considered an Accounting

question 59

Multiple Choice

Which of the following is not normally considered an accounting estimate?

• A)Salvage value of a capital asset.
• B)Net realizable value of slow-moving inventory.
• C)Fair value of actively traded shares.
• D)Allowance for uncollectible receivables.

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Definitions:

Owner's Equity Account

An account on a company's balance sheet representing the owner's total interest in the business, after subtracting liabilities from assets.

Transaction

An agreement or communication carried out between two or more parties that results in the exchange of goods, services, or money.

Credits

Credits refer to a bookkeeping entry that increases a liability or equity account, or reduces an asset or expense account, reflecting the opposite side of a debit.

Assets

Assets are resources owned or controlled by a business, expected to bring future economic benefits.