Which of the Following Is a Conservative Accounting Practice

question 54

Multiple Choice

Which of the following is a conservative accounting practice?

• A)Change from double-declining balance to straight-line depreciation.
• B)Record sales revenue before it is actually earned.
• C)Adjust the allowance for uncollectible accounts to a larger amount.

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Definitions:

Government Loan Guarantees

Financial guarantees provided by the government to lenders, ensuring repayment of loans in case the borrower defaults.

Spillover Costs

Indirect costs incurred by third parties who were not part of an economic transaction, often relating to negative environmental or health effects.

Public Choice Theorists

Economists who apply the theories and methods of economics to the analysis of political behavior.

Limited and Bundled Choices

Marketing strategies where consumers are offered packages or bundles of goods and services as a single combined product with restricted options.