Which Method Is NOT Used to Overstate Assets

question 41

Multiple Choice

Which method is NOT used to overstate assets?

• A)Inappropriately capitalizing costs that should be expensed.
• B)Recording newly acquired assets at cost instead of fair market value in a healthy economy.
• C)Overstating accounts receivable or inventory to hide thefts.
• D)Inflating assets through mergers and acquisitions by manipulation of intercompany accounts and transactions.

---

Definitions:

Ribonucleosides

are compounds consisting of a nucleoside comprising a ribose linked to a nitrogenous base, primarily found in RNA.

Cellobiose

A disaccharide consisting of two glucose units linked by a β(1→4) bond, commonly found in cellulose.

Glycosidic Bonds

Covalent bonds that connect sugar molecules in carbohydrates, crucial for the structure of various polysaccharides and glycoconjugates.

Uridine

A nucleoside consisting of a molecule of uracil attached to a ribose sugar molecule, part of RNA.