Which of the following is not true regarding accounting estimates?
A) Accounting estimates are based on management's knowledge and experience of past and current events.
B) Accounting estimates are based on management's assumptions about conditions that are expected to exist and courses of action the company expects to take.
C) Accounting estimates are based on both subjective and objective factors
D) Because accounting estimates are based, in part, on management's knowledge and experience, they are not biased.

Question

Quizplus · Accepted Answer

This statement is not true. Accounting estimates can be biased due to management's subjective perspective and the influence of personal incentives or preferences.

Which of the Following Is Not True Regarding Accounting Estimates