- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 10. Financial Reporting Quality
- Subject 2. Quality Spectrum of Financial Reports
CFA Practice Question
Which is NOT an example of an accounting practice that creates "hidden reserves"?
B. Assets are eliminated entirely from the books.
C. Liabilities are overvalued.
A. Over-depreciation results in assets and net worth being carried on the firm's financial statements at less than market value.
B. Assets are eliminated entirely from the books.
C. Liabilities are overvalued.
Correct Answer: B
User Contributed Comments 2
| User | Comment |
|---|---|
| tung | it's outright steal, not accounting. |
| maryprz14 | Asset disappear! lol |