Which of the following is an aggressive accounting practice?
A)Change from straight-line to double-declining balance depreciation.
B)Record sales revenue before it is actually earned.
C)Adjust the allowance for uncollectible accounts to a larger amount.
D)Record inventory at lower of cost or market rather than at cost.

Question

Quizplus · Accepted Answer

Recording sales revenue before it is actually earned is an aggressive accounting practice known as premature revenue recognition. This practice can artificially increase a company's reported profits and overstate their financial health.

Which of the Following Is an Aggressive Accounting Practice