Disclosure of the accounting estimates involved when preparing financial statements enables users of financial statements to better understand how the financial information is derived, and it enables comparisons between companies regarding the basis on which management makes decisions. Required: Reflecting on topics we discussed throughout the semester, provide three examples of how different accounting estimates or accounting policies impact the profit reported by the firm.

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter1: Accounting As A Form Of Communication
Section: Chapter Questions
Problem 1.2E
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Disclosure of the accounting estimates involved when preparing financial statements enables users of financial statements to better understand how the financial information is derived, and it enables comparisons between companies regarding the basis on which management makes decisions.

Required:

Reflecting on topics we discussed throughout the semester, provide three examples of how different accounting estimates or accounting policies impact the profit reported by the firm. 

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