Multiple Choice
Which of the following strategies may be considered an unethical way to increase reported profit?
A) record $100 received from a customer as unearned revenue instead of revenue
B) sell inventory at reduced prices in a special Saturday Sale
C) recognise $3 000 of accrued wages when in reality $2 000 wages are owing
D) depreciate a machine over 8 years , when its estimated life is 6 years
Correct Answer:
Verified
Correct Answer:
Verified
Q22: Overstating expenses could be an unethical strategy
Q39: In the case of Unearned revenue,the cash
Q49: In the case of a prepaid expense,the
Q75: Accrued revenue is revenue that:<br>A)will be collected
Q76: The accountant for Noble Jewellery Repair Services
Q78: An adjusting entry that debits Accounts receivable
Q80: The purposes of the adjusting process are:<br>A)to
Q81: If a company is using the accrual
Q82: The Accumulated depreciation account is:<br>A)a contra account
Q84: What type of account is Accumulated depreciation