Professional judgment plays a major role in the practice of accounting.a. In general terms, explain why judgment enters into the accounting process. b. Identify at least three situations in which accountants must rely on their professional judg-ment, rather than on official rules.

Professional judgment plays a major role in the practice of accounting.a. In general terms, explain why judgment enters into the accounting process. b. Identify at least three situations in which accountants must rely on their professional judg-ment, rather than on official rules.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Professional judgment plays a major role in the practice of accounting.
a. In general terms, explain why judgment enters into the accounting process.

b. Identify at least three situations in which accountants must rely on their professional judg-
ment, rather than on official rules.

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