The flexibility that is a key part of the estimates and judgments inherent in accrual accounting allows

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The flexibility that is a key part of the estimates and judgments inherent in accrual accounting allows desperate managers to manipulate the reported numbers. Why not do away with this flexibility and just require companies to report raw cash flow data without any assumptions about bad debt percentage, depreciation life, estimated future warranty repairs, and so forth?

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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