Question: What does a statement Although the income statement is a record of past achievement, the calculations required for certain expenses to involve estimates of the

What does a statement "Although the income statement is a record of past achievement, the calculations required for certain expenses to involve estimates of the future' mean? Also, give examples of where estimates of the future are used?

Step by Step Solution

★★★★★

3.38 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

This involves the principle of Matching concept he matching principle directs an organization to report an expense on its operating statement within t... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Although the income statement is a record of past achievement, the calculations required for certain expenses involve estimates of the future. What does this statement mean? Can you think of examples...

Income Statement Calculations Required: Complete the income statement calculations by filling in all missingnumbers. Company A Company B Company C Company C $1,310 600 249 Sales revenue $2,000 (4)...

What are three examples of estimates that are used in accounting that are not contingencies? Can you explain why they are not considered contingencies?

3.1 Although the income statement is a record of past achievement, the calculations required for certain expenses involve estimates of the future. What does this statement mean? Can you think of...

Although the profit and loss account is a record of past achievement, the calculations required for certain expenses involve estimates of the future.' What is meant by this statement? Can you think...

3.11 LO2/3 Although the statement of financial performance is a record of past achievement, the calculations required for certain expenses involve estimates of the future. What is meant by this...

'Although the statement of financial performance is a record of past achievement, the calculations required for certain expenses involve estimates of the future.' What is meant by this statement? Can...

Bill Barriers, CEO of MightySoft software, is contemplating a new marketing strategy: bundling their best-selling wordprocessor and their spreadsheet together and selling the pair of software...

Use the Checkpoint State & Local practice area to answer the following questions: (BOSTON MASSACHUSETTS) a. For the state of your choice, compare the listing of documents available under the option...

A. Veta inc., has a asset of $400,000 in total where it comprises of equity 70% and debt of 30% (12%) interest. The company was planning to do some investment and it anticipates the increase of...

A liquid crystal cell has the front electrode grooved vertically and the rear electrode grooved horizontally. Sheets that transmit only vertically polarized light are placed before and after the...

used, and the importance of adhering to these procedures K12 Explain how the components are to be aligned, adjusted and positioned prior to securing, and the tools and equipment that is used K13...

You start a consulting business after graduation to do website development for small companies. As your organization grows, you hire more people but communication is informal, employees are committed...

Clarence has been investing $1,000 at the end of every year at 11% compounded annually. With today's contribution his investment has grown to $44,500. How many years ago did he make the first...

C++ Using a DynamicArray and Doubly-Linked list, create a Hashtable. The Hashtable is a DynamicArray of doubly LinkedLists. The LinkedLists handle the collisions. Read the customers.txt and store it...

(a) How far away can a human eye distinguish two ear headlights 2.0 m apart? Consider only diffraction effects and assume an eye pupil diameter of 5.0 mm and a wavelength of 550 nm. (b) What is the...

Why have institutional shareholders become more active in corporate governance issues in recent years?

Searching for an agreed framework of principles for accounting rules is likely to be a journey without an ending. Discuss.

Alkrom plc, an oil trader, commenced trading on 1 January and had the following opening statement of financial position. Statement of financial position as at 1 January m ASSETS Cash 20.0 EQUITY...

Consider the data in the following table. a. Find the sample correlation coefficient r. Interpret your result. b. Show that the test statistic T = 1/(Sy|x / Sxn - 1) for testing H0: 1 = 0 (based on a...

A group of 13 children and adolescents (considered healthy) participated in a psychological study designed to analyze the relationship between age and average total sleep time (ATST). To obtain a...

Several research workers associated with the Office of Highway Safety were evaluating the relationship between driving speed (MPH) and the distance a vehicle travels once brakes are applied (DIST)....