Which of the following accounting practices would be considered LEAST aggressive?
A) Using short useful lives for fixed assets.
B) Shifting future expenses to the current reporting period as a special charge.
C) Recording investment income as revenue.
D) Recording revenue prematurely.
The correct answer was A.
Using a short useful life to record depreciation expense for fixed assets is a conservative accounting practice because the asset is being depreciated more quickly thereby increasing depreciation expense and reducing net profits. The other accounting practices would all be considered aggressive. | 
发表于 2006-4-27 16:33
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