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.

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Definitions:

Floating-Point Data Type

A floating-point data type is a numerical data type used in programming to represent real numbers that can have fractional parts, allowing for precise calculations involving decimals.

Special Symbol

A character or set of characters used to perform a specific function or represent a specific operation in programming languages.

Insertion Point

The specific location in a data structure or document where new data will be entered or added.

Modulus Operator

An operator used in programming to find the remainder of the division of one number by another.