Which of the Following Is an Aggressive Accounting Practice

question 51

Multiple Choice

Which of the following is an aggressive accounting practice?

• A)The use of a shorter service life for depreciation.
• B)Waiting to record a litigation loss.
• C)Adjust the allowance for uncollectible accounts to a larger amount.
• D)The write-down of overvalued inventory.

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Definitions:

Hog Futures

Financial contracts that obligate the buyer to purchase, and the seller to sell, a specific quantity of hogs at a predetermined price at a future date.

Limit Risk

Strategies or mechanisms implemented to reduce the potential for financial loss in investments.

Sell

To sell is to exchange a product, service, or asset for money or to dispose of it into the market.

Spot Price

The current market price at which a particular asset, like a commodity, currency, or security, can be bought or sold for immediate delivery.