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One of the following is an example of managing earnings down (reducing earnings)? (A) Reducing research and development expenditures. (B) Changing estimated bad debts from 3 percent to 2.5 percent of sales.
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One of the following is an example of managing earnings down (reducing earnings)?

(A) Reducing research and development expenditures.
(B) Changing estimated bad debts from 3 percent to 2.5 percent of sales.
(C) Revising the estimated life of equipment from 10 years to 8 years.
(D) Not writing off obsolete inventory.

User Vishnu Vinod
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1 Answer

6 votes

Answer:

The answer is (C) Revising the estimated life of equipment from 10 years to 8 years.

Step-by-step explanation:

Revising estimated life of equipment from 10 years to 8 years has the effect of increasing annual charge of depreciation.

User Gmexo
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