Which of the Following Descriptions Is Not One of the "Thirteen

question 8

Multiple Choice

Which of the following descriptions is not one of the "Thirteen Financial Shenanigans" identified by Schilit and Perler, and listed in Exhibit 10-1?

• A)recording revenue too soon or that is of a questionable quality.
• B)boosting income with one-time gains.
• C)failing to record intangible assets which the company has ownership rights to.
• D)shifting future expenses to the current period as a special charge.
• E)failing to record or improperly reducing liabilities.

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Definitions:

Consolidated Balance Sheet

An aggregated financial statement that shows all assets, liabilities, and equity of a parent company and its subsidiaries.

Control Investment

An investment in which the buyer gains significant influence or control over the operations of the investee.

Acquisition Differential

The Acquisition Differential is the difference between the purchase price of a company and the fair value of its identifiable net assets at the time of acquisition.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.