If Management Decides to Use an Inventory Method That Will

question 1

Multiple Choice

If management decides to use an inventory method that will provide them with a higher net income, this is an example of:

• A) Legitimate discretion.
• B) Financial statement fraud.
• C) Manipulation.
• D) Aggressive accounting techniques.

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Definitions:

Business Relationship

The interaction, connection, or association between two or more businesses that arises from commercial transactions or mutual business interests.

Outcomes

The results or consequences of actions taken by an individual, group, or organization, often measured to assess effectiveness or success.

Act Deontology

Ethical theory suggesting actions are morally right or wrong based on adherence to specific rules, rather than consequences.