Which of the Following Is NOT an Accounting Method That

question 1

Multiple Choice

Which of the following is NOT an accounting method that could be chosen by a company to help the current ratio look as high as possible?

• A) Classifying short-term obligations as noncurrent liabilities
• B) Optimistic estimation of the useful life of plant and equipment
• C) Delaying the recording of credit purchases of inventory until the next accounting period
• D) Neglecting to write off obsolete inventory

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Definitions:

Downsloping Demand Curve

Represents the inverse relationship between price and quantity demanded, indicating that as price decreases, demand increases, and vice versa.

Marginal Utility

The extra pleasure or benefit a consumer receives from consuming an additional unit of a product or service.

Total Utility

The total satisfaction or benefit derived from consuming a particular quantity of goods or services.

Total Utility

The total satisfaction or benefit that a consumer derives from consuming a certain quantity of a good or service.