Upon Reading the Notes to the Financial Statements of KAR

Multiple Choice

Upon reading the notes to the financial statements of KAR Ltd., you notice that the policies they have chosen tend to be deferring revenue but expensing operating costs as incurred.This approach leads you to believe that KAR Ltd.is employing a(n) :

A) Profit maximization strategy.
B) Income tax maximization strategy.
C) Smoothing strategy.
D) Income tax minimization strategy.