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A "Secret" or "Hidden" Reserve Can Occur When a Company

Question 33

Multiple Choice

A "secret" or "hidden" reserve can occur when a company does one or more of the following except for:


A) Fails to recognize an asset in its balance sheet
B) Deliberately measures an asset at an unreasonably low value
C) Sets up unnecessarily high provisions
D) Sets up unnecessarily low provisions

Correct Answer:

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