Which of the Following Examples Is an Accounting Policy Choice

question 86

Multiple Choice

Which of the following examples is an accounting policy choice that an entity can make which will impact the economic consequences of its stakeholders?

• A)Bad debt expense
• B)The amount of tax the company pays
• C)Warranty expense
• D)Depreciation policy

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Definitions:

Capitalist Incomes

The earnings derived from capital investments, such as profits, rental income, and interest, within a capitalist economic system.

Backflows

The reverse movement of water, contaminants, or other substances into the potable water supply due to a change in pressure.

Financial Payments

Monetary transactions involving the transfer of sums between parties, usually in exchange for goods, services, or to fulfill contractual obligations.