Question

Uncertainty about the exact lives of assets prevents precise maturity matching in an ex post (i.e., after the fact) sense even though it is possible to match maturities on an ex ante (expected) basis.

True
False

Answer 1

The correct answer is True.

Step-by-step explanation:

In the accounting field, it is the determination of the amount of a game in the absence of rules or criteria that with absolute precision set the standard for a fixed or accurate calculation.

Accounting estimates are usually linked to the uncertainty surrounding the consequences of events that have occurred, or also with the occurrence or non-occurrence of uncertain events in the future.

The social administrators and management have to make decisions on accounting estimates of some items, members of the financial statements, since there are no registration and valuation rules that offer a solution for their exact determination. From here, in order to approximate the amount of these items, value judgments will be unavoidably used.