Explain how an accountant would use assumptions and estimates when accounting for property, plant, and equipment
What will be an ideal response?
Answer: Accountants use assumptions about the pattern of use of PP&E when determining what depreciation method to use. In addition, they must make estimates for how much depreciation. As a result the net amount reported for PP&E is based on estimated depreciation.
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A classic industry example of "tying" is:
A. Microsoft- selling their operating system and Internet browser together B. Apple- patenting the round dial on the iPod C. Amazon- collecting and controlling information on users without their consent D. Verizon- offering rebates on phones if customers sign a 2-year contract E. Gillette- selling razor refills for a higher cost than the original razor
A credit-based score that insurers claim is highly predictive of future claims costs is an individual's
A) combined ratio. B) loss ratio. C) insurance score. D) underwriting score.