Which of the Following Is an Example of Managing Earnings

question 99

Multiple Choice

Which of the following is an example of managing earnings down?

• A) Changing estimated bad debts from 3 percent to 2.5 percent of sales.
• B) Revising the estimated life of equipment from 10 years to 8 years.
• C) Not writing off obsolete inventory.
• D) Reducing research and development expenditures.

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Definitions:

Outplacement

A service provided by organizations to assist former employees transition to new jobs, offering support such as resume writing and interview coaching.

Employee Leasing

A business arrangement where a company contracts with a third-party firm to handle the administration, recruitment, and training of staff, effectively leasing the employees from the third party.

Trade Agreement

A formal arrangement between two or more countries to regulate tariffs, trade barriers, and other trade-related issues.

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that established a trilateral trade bloc in North America.