Question

Estimates are frequently made in accounting for each of the following items, except_____:

a. Warranty costs
b. Pension expense
c. Depreciation of buildings and equipment
d. Cash receipts from customers

Answer 1

Estimates are frequently made in accounting for various items, but cash receipts from customers do not require estimates. Warranty costs, pension expense, and depreciation of buildings and equipment often involve estimates for accurate accounting.

Step-by-step explanation:

Estimates are frequently made in accounting for each of the following items, except cash receipts from customers. Estimates are commonly used in accounting for warranty costs, pension expenses, and depreciation of buildings and equipment. These estimates help businesses accurately record and report financial information.