Profit Smoothing Can Be Achieved by Which of the Following

question 53

Multiple Choice

Profit smoothing can be achieved by which of the following methods?

• A) Understating allowance for doubtful accounts in periods of higher earnings
• B) Understating inventory obsolescence reserves in periods of higher earnings
• C) Reducing the value of inventory of an acquired company at the time of acquisition resulting in higher earnings when the assets are later sold
• D) None of the above

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Definitions:

B-Lymphocytes

A type of white blood cell that plays a crucial role in the immune system by producing antibodies, which help fight off infections and diseases.

Antigens

Substances that the immune system recognizes as foreign or dangerous, prompting an immune response.

Cardiac Output

The amount of blood pumped by the heart. One of the two major variables that determine blood pressure. Cardiac output is itself determined by two other variables: the rate at which the heart beats (commonly measured in beats per minute) and the amount of blood ejected from the heart (stroke volume). See also total peripheral resistance.

Blood Pressure

The force of circulating blood on the walls of blood vessels, often measured as an indicator of cardiovascular health.