The Manager Preparing the Financial Statements Receives a Bonus Based

question 66

Multiple Choice

The manager preparing the financial statements receives a bonus based on net income.Which of the following accounting decisions could he use to increase his bonus?

• 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.

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Definitions:

Ho Chi Minh City

Formerly known as Saigon, it is the largest city in Vietnam known for its significant role in the country's history and economy.

Renamed

refers to changing the name of a person, place, thing, or idea, often to better fit its identity, purpose, or context.

Saigon

Former name of Ho Chi Minh City, it was the capital of South Vietnam until the end of the Vietnam War in 1975.

Détente

A period of improved relations between two countries that were previously in conflict or tension.