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.

Question

Quizplus · Accepted Answer

Fair value of actively traded shares is not considered an accounting estimate as it can be readily determined by the market. Estimates are used for items that cannot be easily or objectively determined, such as salvage value, net realizable value, and allowance for uncollectible receivables.

Which of the Following Is Not Normally Considered an Accounting