Company A has had a 2year period of very depressed earnings. This has led Comp. A to believe that it will be important to meet analysts’ earnings estimates for the next several quarters. An accounting strategy that is most likely to help meet this goal is to:
A. Decrease asset salvage values.
B. Increase asset salvage values.
C. Increase the use of operatins leases
D. Change the average cost inventory method.
I thought it was B because if you increase asset salvage value your take less of a deprection expense and would increase NI.
What am I missing here?作者: Micholien 时间: 2013-4-17 17:16
yeah, not sure. I would think B as well. What does the Schweser explanation say?作者: thommo77 时间: 2013-4-17 17:16
It was on a practice test and I think it must be wrong. Didnt have an explanation.
