Which of the Following Is Not a Reason Management Might

question 123

Multiple Choice

Which of the following is not a reason management might be tempted to classify costs as assets rather than expensing them during periods in which production exceeds sales?

• A) The company's bank may be more likely to extend financing to the firm.
• B) Income taxes will be lower.
• C) Net income will be higher.
• D) Management bonuses may be higher.

---

Definitions:

Secure Attachment

A type of attachment characterized by trust, a sense of security, and positive relationships, typically developing from consistent caregiver responses in early childhood.

Habituation

The gradual reduction of a response to a stimulus after repeated exposure to it.

Schemas

Cognitive structures or mental frameworks that help individuals organize and interpret information based on past experiences and knowledge.

Psychosocial Development

Refers to the theory by Erik Erikson that human development is a life-long process divided into eight stages, each characterized by a different psychological conflict that needs resolution.