It is common in the acquisition and payment cycle for transactions to require significant judgment.

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Transactions in the acquisition and payment cycle can involve complex calculations, estimations, and decision-making, all of which require significant judgment from the parties involved. For example, determining the appropriate inventory valuation method, assessing the collectability of accounts receivable, and evaluating the reasonableness of vendor invoices all require judgment.

It Is Common in the Acquisition and Payment Cycle for Transactions