Earnings management through strategic matching is best exemplified by
a. changing the useful life of a depreciable asset.
b. timing transactions such that large one-time gains and losses occur in the same quarter.
c. changing the interest rate used in accounting for leases without describing the change in the notes to the financial statements.
d. capitalizing as assets expenditures that have no future economic benefit.
B
You might also like to view...
Marshall approaches each meeting of his fraternity with an acknowledgement that he will advocate for his perspective, but he is willing to give up on some of his preferences if it leads to a preferable resolution of a problem facing the fraternity. What conflict-handling style is Marshall employing?
a. avoiding b. dominating c. compromising d. integrating
Which of the following statements about revenues and expenses is correct?
A. Revenues and expenses are considered assets and liabilities, respectively. B. Expenses decrease the amount of stockholders' equity. C. Both revenues and expenses typically have credit balances. D. Revenue is the same as cash.
Little Corporation uses the accrual method of accounting. Little's sole shareholder, Renee, uses the cash method of accounting. Both taxpayers use the calendar year as their tax year. The corporation accrues a $25,000 interest payment to Renee on December 25, 2011 and makes the payment on March 10, 2012. What are the tax consequences of the transactions to both taxpayers in 2011 and 2012?
What will be an ideal response?
The ________ authorizes the U.S. government to clean up oil spills and spills of other hazardous substances in ocean waters within 12 miles of the shore and on the continental shelf and to recover the cleanup costs from responsible parties.
A. Clean Water Act B. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) C. Federal Water Pollution Control Act (FWPCA) D. Marine Protection, Research, and Sanctuaries Act