If a company is trying to maximize its perceived value to external decision makers,the company is most likely to
A)understate the current assets.
B)understate the long-term liabilities.
C)understate the retained earnings.
D)understate the contributed capital.

Question

Quizplus · Accepted Answer

Understating long-term liabilities would make the company's financial position appear stronger, thereby increasing its perceived value to external decision makers.

If a Company Is Trying to Maximize Its Perceived Value