Assumptions and estimates relating to the statement of financial position would generally NOT include which of the following?

Question

Quizplus · Accepted Answer

Assumptions and estimates relating to the statement of financial position would not include profit, as profit is a result of the income statement and not a factor affecting the statement of financial position. The other options, such as loans raised and repaid, new capital raised and the amount of profit retained, and working capital, all directly affect the statement of financial position and require assumptions and estimates to be made.

Assumptions and Estimates Relating to the Statement of Financial Position