Which of the following actions by a manager could be undertaken with the objective of ensuring that the company continues to meet its debt-to-equity debt covenant?
A) An increase in the allowance for doubtful accounts.
B) The recording of deposits received in advance as revenue.
C) The accrual of warranty liabilities at the time of sale.
D) The classification of the current portion of a long-term liability as a current liability.
Correct Answer:
Verified
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