accounting numbers should be correct.estimation and judgement results in misleading statements.evaluate this s

Answer 1

Yes... what is the rest of the question?

Answer 2

Accounting statements should be factual, exact, truthful, unambiguous and periodic. This means nothing can be estimated or on judgemental values. If it is judgmental or estimation values the rules of such will be stipulated earlier. Like the present value of Properties pland and equipment. The rules of estimation is historic cost or market value whichever is lower.
There are many places in Managerial accounting where estimates are used, like estimating cost allocation to different departments. Then again it is based on usage rates or activity levels which can be chosen by the company before hand and stated in their rule book. Then again managerial accounting is for internal management purpose and it never gets into the hand of investors or outsiders.
So for all practical purposes we can assume that estimation and judgement other than the ones whose rules are specifically stated can lead to misleading statements.