As William Is Preparing the End of Year Financial Statements

question 83

Multiple Choice

As William is preparing the end of year financial statements, he has been asked to review the accrual judgments and estimates to see if the originally calculated net loss can be changed to a net profit. This is an example of

• A) Window dressing
• B) Meeting internal targets
• C) Income smoothing
• D) Meeting external expectations

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Definitions:

Share Draft Account

A type of checking account in credit unions that allows the account holder to access funds through checks (drafts) or electronic means.

Checking Account

Money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called a demand deposit.