Out of Africa,a multi-national corporation,had a very bad year.Management decided to write off a large amount of its long-term assets because they might lose value in future years.Management is ________.

Question

Quizplus · Accepted Answer

By writing off a large amount of long-term assets, management is recording big bath charges. This is a common tactic used by companies to artificially lower their current earnings in order to make future earnings seem better in comparison. It is not necessarily unethical, but it can be seen as a way of manipulating financial statements.

Out of Africa,a Multi-National Corporation,had a Very Bad Year