Which of the Following Is NOT an Example of Real

question 13

Multiple Choice

Which of the following is NOT an example of real activities management that could be used to manage earnings?

• A) Reducing discretionary spending
• B) Adjusting loan loss provisions
• C) Accelerating sales
• D) Delaying research and development

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Definitions:

Non-Current

Assets or liabilities expected to be realized, settled, or consumed beyond one year or the normal operating cycle, whichever is longer.

Current

In financial terms, "current" often relates to assets and liabilities that are expected to be sold, used, or settled within one year.

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Line Item

A specific and distinct item that appears on a statement or list, such as a financial report, indicating a single transaction or account component.