Which of the following is NOT an example of aggressive accounting practices?
A)Recording contingent losses that are probable.
B)Recording research and development costs as assets.
C)Using a lower estimate of bad debts.

Question

Quizplus · Accepted Answer

Recording contingent losses that are probable is a conservative accounting practice, not an aggressive one. Aggressive accounting practices typically involve manipulating financial information to make a company's financial performance appear better than it actually is. Examples of aggressive accounting practices include recording research and development costs as assets, using a lower estimate of bad debts, and inflating revenue through channel stuffing or other means.

Which of the Following Is NOT an Example of Aggressive