Financial statements rely on countless estimates byaccountants, including the useful life of buildings and...

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Accounting

Financial statements rely on countless estimates byaccountants, including the useful life of buildings and equipment,the dollar amounts that will be collected from customers whopurchase on credit, the prediction of future costs related towarranty claims or future pension obligations.
Required:
Prepare a short argument to explainwhy estimates are an acceptable and important ingredient in thepreparation of financial statements.

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Accounting deals with various estimates relating to the future events that is highly uncertain Hence here comes the need to have estimated and approximate figures Accounting See Answer

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In: AccountingFinancial statements rely on countless estimates byaccountants, including the useful life of buildings and equipment,...Financial statements rely on countless estimates byaccountants, including the useful life of buildings and equipment,the dollar amounts that will be collected from customers whopurchase on credit, the prediction of future costs related towarranty claims or future pension obligations.Required:Prepare a short argument to explainwhy estimates are an acceptable and important ingredient in thepreparation of financial statements.