Estimations Are Frequently Made in the Income Statement in Relation

Multiple Choice

Estimations are frequently made in the income statement in relation to items such as bad debts,inventory obsolescence,an asset's useful life,and the expected pattern of consumption of economic benefits of depreciable assets.The effect of these estimations on the income statement is to:

A) Increase the variability of profits.
B) Make the statement unreliable.
C) Reduce the relevance of the profit figures reported.
D) All of the given answers.
E) None of the given answers.