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Estimations are frequently made in the financial statements 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 financial statements is to:

increase the variability of profits.make the statement unreliable.reduce the relevance of the profit figures reported.none of the given answers is correct.

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None of the given answers are correct The estimations are normally made in the financial statements because of the fact that... View the full answer

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