ETHICAL DILEMMA ACCOUNTING ESTIMATES Companies are often under pressure by many (stockholders, creditors, etc.) to show...

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ETHICAL DILEMMA ACCOUNTING ESTIMATES Companies are often under pressure by many (stockholders, creditors, etc.) to show the largest Net Income (Profits) as possible. Such pressure may cause some management of companies to alter or manipulate their estimates for Depreciation to artificially create larger Net Income (Profits). REQUIRED 1. Do estimates by management affect the amount of Depreciation reported in a company's Financial. Statements and, thereby, affect the Net Income (Profits) of the company for the Accounting period? Explain. ETHICAL DILEMMA ACCOUNTING ESTIMATES Companies are often under pressure by many (stockholders, creditors, etc.) to show the largest Net Income (Profits) as possible. Such pressure may cause some management of companies to alter or manipulate their estimates for Depreciation to artificially create larger Net Income (Profits). REQUIRED 1. Do estimates by management affect the amount of Depreciation reported in a company's Financial. Statements and, thereby, affect the Net Income (Profits) of the company for the Accounting period? Explain.