Which of the Following Is an Aggressive Accounting Practice

question 34

Multiple Choice

Which of the following is an aggressive accounting practice?

• A)Change from straight-line to double-declining balance depreciation.
• B)Record sales revenue before it is actually earned.
• C)Adjust the allowance for uncollectible accounts to a larger amount.
• D)Record inventory at lower of cost or market rather than at cost.

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Definitions:

Manufacturing Capacity

The maximum output or production ability of a manufacturing facility, considering constraints like physical space, machinery, and labor hours available.

Inventory Costs

Expenses associated with holding or managing goods in stock, including storage, handling, and depreciation.

Temporary Workforce

Employees hired on a non-permanent basis to address short-term workload increases, covering for absent employees, or to provide specialized skills.

Peak Season

The time period during which the demand for a certain product, service, or destination is highest, often resulting in higher prices and increased business activity.