Which of the Following Is NOT an Accounting Method That

question 7

Multiple Choice

Which of the following is NOT an accounting method that could be chosen by a company to increase reported profits in a particular year?

• A) Understating allowance for doubtful debts
• B) Classifying longer-term receivables as current assets
• C) Changing estimates of the useful life of plant and equipment
• D) Changing the method of inventory valuation

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Definitions:

Compromising

A process of making concessions to settle differences where both parties involved give up something to reach an agreement.

Problem-Solving

The process of finding solutions to difficult or complex issues.

Mediation

A conflict resolution process where a neutral third party facilitates negotiations between disputing parties to help them reach a mutually acceptable agreement.

Voluntarily

Acting based on one's own free will or choice, rather than due to pressure or obligation.