Which of the following is a result of aggressive accounting practices?
A)Lower income,higher assets,and higher liabilities.
B)Higher income,higher assets,and lower liabilities.
C)Lower income,lower assets,and higher liabilities.

Question

Quizplus · Accepted Answer

Aggressive accounting practices often result in the overstatement of assets and understatement of liabilities, which leads to higher reported income. Therefore, option B, which indicates higher income, higher assets, and lower liabilities, is the result of aggressive accounting practices. Option A (lower income, higher assets, and higher liabilities) and option C (lower income, lower assets, and higher liabilities) do not accurately reflect the effects of aggressive accounting practices.

Which of the Following Is a Result of Aggressive Accounting