Which of the Following Is NOT an Example of Aggressive

question 119

Multiple Choice

Which of the following is NOT an example of aggressive accounting practices?

• A)Recording contingent losses that are probable.
• B)Recording research and development costs as assets.
• C)Using a lower estimate of bad debts.

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Definitions:

Voluntarily Pay

A scenario where payments are made without legal obligation, often as a gesture of goodwill or charity.

Antitrust Laws

Prohibitions against price fixing and other anticompetitive practices.

Collusion

An agreement between two or more parties, usually firms, to limit competition by setting prices, production levels, or dividing markets, often in a way that breaches antitrust laws.

Natural Monopolies

Companies or industries that exhibit decreasing average costs over a large range of output, making it inefficient for new entrants to compete.