Labor officials believe that the management of Hatfield is attempting to understate its net income to avoid
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Labor officials believe that the management of Hatfield is attempting to understate its net income to avoid making any concessions in the labor negotiations. Which of the following actions by management will most likely result in low-quality earnings?
a. Lengthening the life of a depreciable asset in order to lower the depreciation expense.
b. Lowering the discount rate used to value pension obligations.
c. Recognizing revenue at the time of delivery rather than when payment is received. p-696
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ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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