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.

Question

Quizplus · Accepted Answer

Recording sales revenue before it is actually earned is an aggressive accounting practice because it artificially inflates the company's financial statements in the short term. It can lead to overvaluing the company's assets and overestimating its profitability.

Which of the Following Is an Aggressive Accounting Practice