Accrual accounting requires estimates of future outcomes.For example, the reserve for bad debts is a forecast of the amount of current receivables that will ultimately prove unconllectiable.

Required: Identify and explain three reasons why accounting information might deviate from the underlying economic reality.Cite examples of transations that might give rise to each of the reason

There is a textbook solution to this already, but it is far too wordy. I need a short and sweet answer. Thanks!