Distortions in revenues (gains) and expenses (losses) can arise from several accounting sources.These include choices in the timing of transactions (such as revenue recognition and expense matching), selections from the variety of generally accepted principles and methods available, the introduction of conservative or aggressive estimates and assumptions, and choices in how revenues, gains, expenses, and losses are classified and presented in financial statements.Generally, a company wishing to increase current income at the expense of future income will engage in one or more of the these practices. identify one-