The new CEO of the company takes over on December 10,2011.He is promised a significant bonus for every percent he can raise net income in 2012 over 2011 results.Which of the following adjustments would aid him in making 2012 results look the most impressive?
A) Allocating more of the cost of machinery to amortization expense in 2012 than in 2007.
B) Prepaying 2013 expenses in 2011 and defering 2012 revenues to 2013.
C) Deferring 2012 expenses to 2013 and accruing revenues in 2012 that have not yet been earned.
D) All of the above.
Correct Answer:
Verified
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