题目内容

Which of the following actions is least likely to immediately increase earnings?

A. Selling more inventory than is purchased or produced.
B. Lowering the salvage value of depreciable assets.
C. Recognizing revenue before fulfilling all the terms of a sale.

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When a company redeems bonds before they mature, the gain or loss on debt extinguishment is calculated as the bonds carrying amount minus the:

A. Face or par value of the bonds.
B. Amount required to redeem the bonds.
C. Amortized historical cost of the bonds.

Graphics, Inc. has a deferred tax asset of $4,000,000 on its books. As of December 31, it is probable that $2,000,000 of the deferred tax assets value will never be realized because of the uncertainty

A. Reduce the deferred tax asset account by $2,000,000.
B. Establish a valuation allowance of $2,000,000.
C. Establish an offsetting deferred tax liability of $2,000,000.

Competitive threats to the profitability or financial stability of a firm are best categorized as an accounting fraud risk factor related to:

A. opportunities.
B. Incentives and pressures.
C. Attitudes and rationalizations.

The ratio of a firms property, plant, and equipment, net of accumulated depreciation, to its annual depreciation expense is best interpreted as an estimate of the

Average age of the firms assets.
B. Average useful life of the firms assets.
C. Remaining useful life of the firms assets.

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