Which of the Following Is NOT an Accounting Method That

question 29

Multiple Choice

Which of the following is NOT an accounting method that could be chosen by a company to increase reported profits?

• A) Understating allowance for doubtful debts
• B) Classifying longer-term receivables as current assets
• C) Changing estimates of the useful life of plant and equipment
• D) Changing from the weighted average to the FIFO method of inventory valuation in a period of rising prices

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Definitions:

Differentiate

To distinguish or create a distinct difference between products, services, or concepts, often to gain a competitive advantage.

Competitors

Other businesses or individuals offering similar products or services in the same market, vying for the same customer base.

Convenient Locations

Places that are easily accessible to customers, often chosen by businesses to enhance visibility and accessibility, leading to increased customer traffic.

Customer Relationship Management

A strategy for managing an organization's interactions with current and potential customers, often using data analysis to study large amounts of information.