Which Method Is NOT Used to Overstate Assets

question 18

Multiple Choice

Which method is NOT used to overstate assets?

• A)Inappropriately capitalizing costs that should be expensed.
• B)Recording newly acquired assets at cost instead of fair market value in a healthy economy.
• C)Creating ficticious accounts receivable or inventory to hide thefts.
• D)Inflating assets through mergers and acquisitions by manipulation of intercompany accounts and transactions.

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Definitions:

Productivity

The measure of efficiency in converting inputs into outputs, often assessed in terms of the amount produced per unit of labor or resources.