Which of the following accounting policies is NOT conservative?
A) Use of straight-line depreciation.
B) Quick write-down of goodwill.
C) Use of last in, first out, to measure inventory.
D) Use of completed contract method for projects.
The correct answer was A.
Accelerated depreciation, which gets equipment off the balance sheet more quickly, is considered more conservative than straight-line depreciation. All the other policies are considered conservative. | 
发表于 2006-4-27 16:33
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