If Management Thought That the Current Year's Net Income Was

Multiple Choice

If management thought that the current year's net income was going to be higher than next year's and wanted to create a hidden reserve, which of the following actions could they take?

A) Overestimate the allowance for uncollectibles in the current year.
B) Underestimate the allowance for uncollectibles in the current year.
C) Overestimate the allowance for uncollectibles in the next year.
D) Underestimate the allowance for uncollectibles in the next year.