Which of the Following Are Ways in Which Managers Can

question 23

Multiple Choice

Which of the following are ways in which managers can manipulate the income statement in order to show a higher profit?

• A) Bringing forward the recognition of sales
• B) Overstate closing inventory
• C) Make repairs and maintenance look like capital expenditure
• D) All of the above

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Definitions:

Economically Unstable

A condition where an economy experiences frequent and significant disturbances, often due to inflation, unemployment, or political instability.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.

Forward Contracts

Non-standardized contracts between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Trade Surplus

Occurs when a country's exports exceed its imports during a specific time period, indicating a positive balance of trade.