Which of the following is not an example of aggressive accounting practices?

A. Using a lower estimate of bad debts.
B. Increasing the useful life used in calculating depreciation.
C. Recording contingent losses that are probable.
D. Recording research and development costs as assets.


Answer: C

Business

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Narrative 14-1For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.   A mortgage applicant who has a monthly gross income of $2,780 applies for a mortgage with a monthly PITI of $689.44. The applicant's other financial obligations total $405.88 per month. If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would the applicant qualify for?  Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36%

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