Which method is NOT used to overstate assets?
a. Inappropriately capitalizing costs that should be expensed.
b. Recording newly acquired assets at cost instead of fair market value in a healthy economy.
c. Creating ficticious accounts receivable or inventory to hide thefts.
d. Inflating assets through mergers and acquisitions by manipulation of intercompany accounts and transactions.
b
FEEDBACK: a. Incorrect.
b. Correct. Recording acquired assets at cost instead of fair market value will understate assets during times of economic prosperity.
c. Incorrect.
d. Incorrect.
You might also like to view...
?The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment.
Answer the following statement true (T) or false (F)
Traditional management information systems focus on financial reporting
Indicate whether the statement is true or false
The value chain is the sequence of business activities in which usefulness is added to the products or the services within an organization
Indicate whether the statement is true or false
Merit raises, bonuses, and commissions are all types of ______.
a. wages b. perquisites c. incentives d. benefits