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As Part of the Company's Compensation Plan,a Chief Executive Officer

Question 51

Multiple Choice

As part of the company's compensation plan,a chief executive officer (CEO) is paid 1% of net profit if net profit exceeds $20 00 000 but no more than $40 000 in a given year.It is estimated that net profit for the year will exceed $45 00 000.Under PAT the CEO will likely adopt which accounting policy


A) decrease reported profit as much as he can
B) decrease reported profit to $20 00 000
C) increase reported profit as much as he can
D) increase reported profit up to $40 00 000

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