GB Company Had a Very Bad Year in 2011

question 144

Multiple Choice

GB Company had a very bad year in 2011.The controller knew that the company already had a significant loss for the year,so he put the paperwork in his bottom drawer for some of the shipments made in the last two weeks of 2011.As a result,$100,000 of sales were not recorded and the customers weren't billed until 2012.The controller is ________.

• A)acting ethically and being conservative
• B)recording big bath charges
• C)recognizing revenue too late
• D)setting up a cookie jar reserve

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Definitions:

Rational Individual

Refers to a person who makes choices that maximize their personal benefit or utility, based on their own preferences and available information.

Charity

An act of giving help, typically in the form of money or goods, to those in need.

Predicts Well

"Predicts well" refers to the accuracy and reliability with which a model or method can forecast future events or outcomes based on current or past data.

Economic Model

A simplified representation of economic processes, typically using mathematical formulas or graphs, to understand and predict economic behaviors.