quality of earnings

Maneesh 02 May 2020 at 11:51 AM

An example of a practice that would be least likely to negatively impact a company’s quality of earnings is the intentional

A) Purchase of inventory of an obsolete product at year-end to avoid a LIFO liquidation.
B) Offer to the sales staff of financial incentives for increasing year-end sales.
C) Estimate of uncollectible accounts as 2% of sales when the company’s records show the historical rate is 5% of sales
D) Recording of a order from a reliable customer as a sale on December 31 when the cash is received, even though the goods will not ship until January 2.