The Manager Preparing the Financial Statements Is Trying to Reduce

question 36

Multiple Choice

The manager preparing the financial statements is trying to reduce net income to keep income taxes as low as possible.Which of the following accounting decisions could he use to decrease income?

• A)Not recognize revenue until all the cash is collected.
• B)Pick a longer life for the depreciation of fixed assets.
• C)Pay out the maximum amount of dividends possible.
• D)Delay the payment of expenses as long as possible.