Accounting Dictionary


Educated guesses or approximations.

Chi deducts 2% in bad debt expense every year. She is guessing or estimating that 2% of her credit customers will not pay her. The 2% is not a complete guess because every year for the past 10 years approximately 2% of her customers have not paid. We would say she is estimating or taking an educated guess.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top