Which of the Following Is an Aggressive Accounting Practice

question 78

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.

---

Definitions:

Activity Level

A measure of the volume of production or services activity within a company, often used to allocate variable costs.

Revenue Variance

The difference between the actual revenue earned and the budgeted or expected revenue, indicating the effectiveness of sales strategies and market conditions.

Activity Level

A measure of the amount of work performed or units produced, used often in costing to allocate fixed costs properly.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, such as factory rent, utilities, and maintenance.