Which of the following is an accounting choice that violates GAAP?
A) recording sales after they are realized, not before it
B) recording intangible assets
C) recording fictitious inventory
D) using estimates to determine provisions for bad debts

Question

Quizplus · Accepted Answer

Recording fictitious inventory violates the basic principle of accuracy and honesty in financial reporting, thereby violating GAAP. Recording sales after they are realized instead of before, recording intangible assets, and using estimates to determine provisions for bad debts are all acceptable accounting choices that are in line with GAAP.

Which of the Following Is an Accounting Choice That Violates