Which Is Not an Example of a Biased Accrual

question 121

Multiple Choice

Which is not an example of a biased accrual?

• A)Accruals based on overly optimistic estimates.
• B)Accruals based on overly conservative estimates.
• C)Accruals based on achieving target level of revenues.
• D)Accruals based on applying professional judgment.

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Definitions:

Business Associations

Represent the interests of organisations in an industry or region.

Occupational Health

A field of healthcare that focuses on the physical and mental well-being of employees in the workplace by preventing and addressing injuries and illnesses that may arise from work activities.

Profit Margins

The percentage of revenue remaining after deducting the cost of goods sold, symbolizing the financial health and profitability of a business.

Welfare Facilities

Denotes amenities and services provided by employers to improve the well-being and working conditions of employees.