Because accounting often requires estimates to be made to assess the effect of a transaction, the shorter the time period, the easier it becomes to determine the proper adjustments.

Question

Quizplus · Accepted Answer

Shorter time periods do not necessarily make it easier to determine proper adjustments in accounting because estimates are often based on patterns or trends that may be clearer over longer periods, and shorter periods can introduce volatility and less predictability.

Because Accounting Often Requires Estimates to Be Made to Assess