Which of the Following Strategies May Be Considered an Unethical

question 79

Multiple Choice

Which of the following strategies may be considered an unethical way to increase reported profit?

• A)record $100 received from a customer as unearned revenue instead of revenue
• B)sell inventory at reduced prices in a special Saturday Sale
• C)recognise $3 000 of accrued wages when in reality $2 000 wages are owing
• D)depreciate a machine over 8 years , when its estimated life is 6 years

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the product.

Total Assets

The sum of all current and non-current assets owned by a business, indicating its total resources.

Cost Per Unit

The total expense incurred in manufacturing or acquiring a product divided by the number of units.

Purchased

Acquired in exchange for money or its equivalent; obtaining ownership of a good or service.