Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / The financial statements of a firm that uses more aggressive accounting practices

The financial statements of a firm that uses more aggressive accounting practices

The financial statements of a firm that uses more aggressive accounting practices would be likely to report:

a.

Higher profitability.

b.

Higher dividends.

c.

Higher liabilities.

d.

Fewer total assets.

 

 

118. Which of the following is NOT an example of applying conservatism in accounting?

a.

Recording contingent losses that are probable.

b.

Expensing all research and development costs are they are incurred.

c.

Using the lower-of-cost-or-market rules for inventory accounting.

d.

Increasing the useful life used in calculating depreciation.

 

 

119. Which of the following is a conservative accounting practice?

a.   The use of a longer service life for depreciation.

b.   Waiting to record a litigation loss.

c.   Adjust the allowance for uncollectible accounts to a smaller amount.

d.   The write-down of overvalued inventory.

 

 

120. Which of the following is an aggressive accounting practice?

a.   The use of a shorter service life for depreciation.

b.   Waiting to record a litigation loss.

c.   Adjust the allowance for uncollectible accounts to a larger amount.

d.   The write-down of overvalued inventory.

 

 

121. 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.

d.   Record inventory at market rather than lower of cost or market.

 

 

122. Which of the following is an aggressive accounting practice?

a.   Change from straight-line to double-declining balance depreciation.

b.   Record sales revenue before it is actually earned.

c.   Adjust the allowance for uncollectible accounts to a larger amount.

d.   Record inventory at lower of cost or market rather than at cost.

Jan 27 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions