Which of the Following Actions by a Manager Could Be

question 6

Multiple Choice

Which of the following actions by a manager could be undertaken with the objective of ensuring that the company continues to meet its debt-to-equity debt covenant?

• A)An increase in the allowance for doubtful accounts.
• B)The recording of deposits received in advance as revenue.
• C)The accrual of warranty liabilities at the time of sale.
• D)The classification of the current portion of a long-term liability as a current liability.

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Definitions:

Strategic Plan

A Strategic Plan is a company's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Financial Consequences

The economic effects or outcomes that result from financial decisions or actions, which can affect an individual's or organization's financial health.

Operating Activities

The day-to-day actions of producing, selling, and delivering a company's products or services, which are reflected in its cash flow.

Control Costs

The act of monitoring and managing expenses to adhere to a budget or improve efficiency, ensuring profitability and financial stability.