As William Is Preparing the End of Year Financial Statements

question 17

Multiple Choice

As William is preparing the end of year financial statements, he realizes that the earnings are not quite up to par for the large loan application that is being currently processed. He decides to stretch the assumptions just enough to be able to meet the requirements for the loan application. This is an example of

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

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Definitions:

Predestination

The belief or doctrine that all events are predetermined by a divine will or fate, and humans have no real ability to alter their futures.

Belief

A psychological state in which an individual holds something to be true, based on evidence, trust, or confidence, not requiring proof for acceptance.

Public Service

Services provided by the government to its citizens, either directly through public sector agencies or by financing provision of services.

Romans

An ancient civilization originating from the city of Rome, known for its significant contributions to law, politics, culture, and architecture, or refers to the citizens of Rome.