Which of the following does not involve the use of estimates by an entity in preparing its financial statements?

Question

Quizplus · Accepted Answer

The original purchase price of an asset is a known and recorded amount, and therefore does not involve the use of estimates. The other options listed involve estimates, such as estimating the amount of money that may not be collected from customers (doubtful debts expense), the decrease in value of an asset over time (depreciation expense), and the amount of employee benefits owed (long-service leave).

Which of the Following Does Not Involve the Use of Estimates