Upon reading the notes to the financial statements of JMR Ltd., you notice that the policies they have chosen tend to recognize revenue early in the earnings cycle while deferring costs to later periods.This approach leads you to believe that JMR Ltd.is employing a(n):
A)Profit maximization strategy.
B)Income tax minimization strategy.
C)Income tax maximization strategy.
D)Smoothing strategy.

Question

Quizplus · Accepted Answer

Recognizing revenue early and deferring costs can inflate profits in the short term, suggesting a profit maximization strategy.

Upon Reading the Notes to the Financial Statements of JMR