ACCOUNTING ESTIMATE Definition

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ACCOUNTING ESTIMATE is an approximation of a financial statement element. Estimates are included in historical financial statements because some amounts are
uncertain pending outcome of future events and relevant data about events that have occurred cannot be accumulated on a timely, cost-effective basis.

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ALLOWANCE, within Sales, is a concession granted to customers for unsatisfactory goods or services. Reduces sales because a portion of the sale has not been earned.

INTEREST DATES are the dates on which interest is payable to the holders of bonds: for government, corporate and municipal bonds, twice a year; for mortgage-backed securities, every month, and for foreign securities typically once a year.

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