What might a manager do during the last quarter of a fiscal year if she wanted to decrease current annual net income?
A) Delay shipments and sales to customers until after the end of the fiscal year.
B) Relax credit policies for customers.
C) Pay suppliers all amounts owed.
D) Delay purchases from suppliers until after the end of the fiscal year.

Question

Quizplus · Accepted Answer

By delaying shipments and sales to customers until after the end of the fiscal year, the manager can defer revenue recognition, thereby decreasing the current annual net income.

What Might a Manager Do During the Last Quarter of a Fiscal