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Estimates used in accountancy to prepare financial statements at times are not able to produce precise
and/or quantifiable amounts. This is one example where estimates become subjective and are devoid
of accuracy. In these conditions, foresight of the management will be relied on to calculate the
amounts that need to be fed in the financial statements. As a result of this, the dependability of the
accounting information can greatly decline (Accounting-Simplified).
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