To explain: The concept of judgment and when it is used by accountants.
Explanation of Solution
Judgment:
Judgment can be defined as a process in which an accountant makes a particular decision after thorough analysis of various alternatives available at a particular point of time. It can also be defined as the use of practical knowledge, reasoning, and rationale by the accountant to make a correct decision in the field of accountancy.
Judgment is used by accountants in almost all phase of their work. From the first stage of bookkeeping until the last stage of
Hence, the concept of judgment and its use by an accountant is discussed as above.
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