NO.PZ2019120301000291
问题如下:
Question Conservative, rather than aggressive, accounting is most likely associated with:选项:
A.increased sustainability of earnings. B.higher current reported performance. C.recognition of losses once certain.解释:
SolutionA is correct. Conservative accounting choices decrease a company’s reported performance and results in the current period and may increase its reported performance and financial position in later periods. Therefore, it typically avoids a sustainability issue.
B is incorrect because higher current reported performance is a result associated with aggressive accounting choices, not conservative ones.
C is incorrect because in general, conservatism means that losses are recognized when probable; waiting to recognize losses until they are certain would be an aggressive approach rather than a conservative one.
是不是c选项说的是earning smoothing 而不是conservative