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Analysing Statement of Profit and Loss

Is it accepta...

Question

Is it acceptable that some of the expenses reported on the income statement be estimates?

A

Yes

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B

No

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C

Partially Yes

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D

None of these

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Solution

The correct option is A
Yes

Yes, it is acceptable that some of the expenses reported on the income statement be estimates.
Bad Debt Expense is an example of estimates

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