Which of the following is NOT an aggressive accounting practice?
A)Non-GAAP method of capitalization interest on landfill development costs.
B)Failure to properly accrue for tax and self-insurance expense.
C)Under the accrual method, companies charge warranty costs to operating expense in the year of sale.
D)Refusal to write-off permitting and/or project costs on impaired or abandoned landfills.

Question

Quizplus · Accepted Answer

Option C is not an aggressive accounting practice as under the accrual method, companies are required to charge warranty costs to operating expenses in the year of sale. This is a standard accounting practice and not considered aggressive. Options A, B, and D are examples of aggressive accounting practices where companies may manipulate their financial statements to present a better financial picture than what actually exists.

Which of the Following Is NOT an Aggressive Accounting Practice