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When Assets Are Overstated (Intentional or Unintentional)

Question 41

Multiple Choice

When assets are overstated (intentional or unintentional)


A) management has a better chance to earn their end of year bonuses
B) outsiders are mislead about the future cash flows when the assets are sold
C) outsiders are mislead about the current cash flows
D) management is misleading outsiders about the future cash flows that the assets can earn

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