Assignment:
When it comes to the preparation of financial statements, there is some disagreement as to how meaningful a tool they really are in determining the profit or loss of an equity. Let us explore this in our class discussion.
Answer the following:
- Some say, because of assumptions and estimates that go into the preparation of financial statements, the statements are inaccurate and are, therefore, not a meaningful tool to determine the profits or losses of an entity or the financial position of an entity. Do you agree or disagree with this statement? Why or why not?