Because accounting measures should be verifiable,liabilities should not be estimated.

Name: Because accounting measures should be verifiable,liabilities should not be estimated.
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Question

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Liabilities may need to be estimated in certain circumstances such as when the exact amount is uncertain or when the obligation has not yet been fulfilled but is reasonably expected to occur. However, these estimates must be based on reliable information and methods, and disclosed in the financial statements.

Because Accounting Measures Should Be Verifiable,liabilities Should Not Be Estimated