A CEO Talks the CFO into Depreciating New Assets for 10

question 35

Multiple Choice

A CEO talks the CFO into depreciating new assets for 10 years instead of the 7 years it should be depreciated for. This is an example of:

• A) Earnings manipulation.
• B) Legitimate discretion.
• C) Aggressive accounting techniques.
• D) Ratio manipulation.

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Definitions:

Teens And Young Adults

Teens and young adults refer to individuals in the age group from adolescence to early adulthood, typically covering ages 13 through 24.

Obsession

Persistent, unwanted thoughts that cause distress or anxiety.

Compulsion

Repetitive and irrational behaviors or mental acts that an individual feels driven to perform, often associated with obsessive-compulsive disorder.

Repeatedly Washing

Often associated with obsessive-compulsive disorder (OCD), this behavior involves the compulsive urge to wash one's hands or objects to alleviate distress or anxiety.