Author Question: Which of the following accountants use a conservative reporting strategy? A) Imogene reported a ... (Read 86 times)

2125004343 · **on:** Jul 6, 2018

Which of the following accountants use a conservative reporting strategy?

A) Imogene reported a higher inventory than actual.
B) Malik understated the expense incurred during the year.
C) Lia capitalized the general maintenance expenses.
D) Yuriko used a higher depreciation rate for the assets.

Question 2

Which of the following is true?
a. An asset account would be decreased with a debit.
b. A liability account would be increased with a debit.
c. A revenue account would be increased with a credit.
d. An expense account would be increased with a credit.

kmb352 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

D
Explanation: D) Conservative accounting choices within GAAP include overly aggressive recognition of provisions or reserves, overvaluation of acquired in-process R&D in purchase acquisitions, and overstatement of restructuring charges and asset write-offs.

Answer to Question 2

C