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Upon Analyzing the Financial Statements of KER Ltd

Question 103

Multiple Choice

Upon analyzing the financial statements of KER Ltd.,you notice that there have been few capital asset acquisitions and that capital assets seem low relative to the type of business the company is in.This observation may mean that KER Ltd.is engaged in a(n) :


A) Smoothing strategy.
B) Income tax minimization strategy.
C) Off-balance-sheet financing.
D) Profit maximization strategy.

Correct Answer:

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