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Which of the Following Is Not a Reason Management Might

Question 123

Multiple Choice

Which of the following is not a reason management might be tempted to classify costs as assets rather than expensing them during periods in which production exceeds sales?


A) The company's bank may be more likely to extend financing to the firm.
B) Income taxes will be lower.
C) Net income will be higher.
D) Management bonuses may be higher.

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