A company may overstate its reported assets by

Question

Quizplus · Accepted Answer

All the options listed are methods by which a company might overstate its reported assets. Avoiding depreciation allows assets to be reported at their original cost rather than their reduced value over time. Inflating asset valuations directly increases the reported value of assets. Understating bad-debt allowances means that the company is not accurately accounting for the potential losses from debts that may not be recoverable, thereby overstating the value of its receivables.

A Company May Overstate Its Reported Assets by