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2 years ago

Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.

Business

1 answer:

Step2247 [10]2 years ago

4 0

Answer: False

Explanation:

Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.

One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.

The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.

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3 years ago

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3 years ago

If a U.S.-based automobile parts supplier were to apply a global mind-set to its internal analysis, it would: a. review sales da

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2 years ago

Goodwill is: Group of answer choices Amortized over the greater of its estimated life or forty years. Only recorded by the selle

Tems11 [23]

Explanation:

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2 years ago