Accrual accounting requires the use of many estimates, including:
A)Uncollectible accounts expense.
B)Warranty costs.
C)Assets' useful lives.
D)All of these answers choices are correct.

Question

Quizplus · Accepted Answer

Accrual accounting requires the use of estimates for all the options listed, including uncollectible accounts expense, warranty costs, and assets' useful lives. These estimates are necessary to properly match expenses with revenue and accurately reflect the financial position and performance of the company.

Accrual Accounting Requires the Use of Many Estimates, Including