Which of the Following Would Most Likely Be Considered Intentional

question 54

Multiple Choice

Which of the following would most likely be considered intentional misapplication of accounting principles on financial statements?

• A)A capital lease is presented as periodic rent expense rather than interest and depreciation.
• B)A deferred tax asset is reduced to zero with a valuation allowance.
• C)Insurance is amortized.
• D)Revenues for up-front fees are deferred rather than recognized immediately.

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Definitions:

Working On Engagements

This involves professionals being actively involved in projects or contracts with clients, often in consultancy or advisory capacities.

Business Development

The process of creating long-term value for an organization from customers, markets, and relationships.

Resource Consumption

The amount of resources, such as materials, energy, or time, used in the production of goods or services.

Activity Rates

The charges or costs applied to specific activities or cost drivers in activity-based costing.