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The New CEO of the Company Takes Over on December

Question 79

Multiple Choice

The new CEO of the company takes over on December 10,2017.He is promised a significant bonus for every percent he can raise net income in 2018 over 2017 results.Which of the following adjustments would aid him in making 2018 results look the most impressive?


A) Allocating more of the cost of machinery to depreciation expense in 2018 than in 2017.
B) Prepaying 2019 expenses in 2017 and deferring 2018 revenues to 2019.
C) Deferring 2018 expenses to 2019 and accruing revenues in 2018 that have not yet been earned.
D) All of the answers are acceptable.

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