A situation where the choice of accounting policy is made to endure a desired impression by its preparers is known as
A) environmental accounting
B) creative accounting
C) imaginative accounting
D) bottom of the harbour accounting

Question

Quizplus · Accepted Answer

Creative accounting involves the use of accounting policies that may not comply with Generally Accepted Accounting Principles (GAAP) in order to present a desired image or result. This can include manipulating figures, exploiting loopholes in regulations, or choosing accounting policies that give a certain impression.

A Situation Where the Choice of Accounting Policy Is Made