Many account balances require estimates and/or a great deal of management judgement.One area that does NOT require such judgement would be:
A) obsolete inventory.
B) liability for warranty payments.
C) interest expense.
D) allowance for uncollectible accounts.

Question

Quizplus · Accepted Answer

Interest expense does not require estimates or management judgement as it is a straightforward calculation based on the interest rate and the amount of debt outstanding. The other three options listed involve subjective judgement and estimates.

Many Account Balances Require Estimates And/or a Great Deal of Management