Creative Accounting

question 57

Multiple Choice

Creative Accounting:

• A) Is a term used by the media to describe the process of selecting accounting methods when creating reports that provide results desired by preparers.
• B) Occurs, according to PAT, because managers will work for their own interests.
• C) Is easy for Auditors to identify.
• D) Occurs when account preparers choose not to follow accounting standards to best reflect the performance of the firm.
• E) Is a term used by the media to describe the process of selecting accounting methods when creating reports that provide results desired by preparers and occurs, according to PAT, because managers will work for their own interests.

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Definitions:

Ionic Bond

A type of chemical bond formed through the electrical force between oppositely charged ions.

Calorie

A unit of energy often used to quantify the amount of energy food provides to the human body.

Van der Waals Interaction

A weak force of attraction between molecules or parts of molecules that results from transient fluctuating electrical charges.

Hydrogen Bond

A weak chemical bond formed between the hydrogen atom of one molecule and an electronegative atom (often oxygen or nitrogen) of another molecule.