Which of the Following Behaviours Is NOT Unethical

question 1

Multiple Choice

Which of the following behaviours is NOT unethical?

• A) Delaying the write-down of obsolete inventories due to competitive pressures.
• B) Recording false sales and purchases.
• C) Selectively assigning costs to inventory.
• D) Changing a company's accounting policy to match that of its competitors for comparative purposes.

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Definitions:

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installments.

Equity Method

An accounting technique used to record investments in which the investor has significant influence, but not control, over the investee.

Bonds Payable

A financial accounting term used to describe the outstanding debts owed by a company through issuing bonds.

Equity Method

A method of accounting for investments in which the investing company records the investment at original cost and subsequently adjusts the carrying amount to reflect its share of the net profits or losses of the investee.