Which of the following is not a reason a company would be willing to accept new business at a loss? A.) The company has the expectation that certain customers can influence other potential customers. B.) The company has the expectation that it will make up for it in later years and has the expectation that certain customers can influence other potential customers. C.) The company has the expectation that its estimates will prove incorrect and that the business will result in a profit. D.) The company has the expectation that it will make up for it in later years.
Which of the following is not a reason a company would be willing to accept new business at a loss? A.) The company has the expectation that certain customers can influence other potential customers. B.) The company has the expectation that it will make up for it in later years and has the expectation that certain customers can influence other potential customers. C.) The company has the expectation that its estimates will prove incorrect and that the business will result in a profit. D.) The company has the expectation that it will make up for it in later years.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 17MC: What would be a reason a company would want to understate income? A. to help nudge its stock price...
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Question
Which of the following is not a reason a company would be willing to accept new business at a loss?
|
A.) |
The company has the expectation that certain customers can influence other potential customers. |
|
B.) |
The company has the expectation that it will make up for it in later years and has the expectation that certain customers can influence other potential customers. |
|
C.) |
The company has the expectation that its estimates will prove incorrect and that the business will result in a profit. |
|
D.) |
The company has the expectation that it will make up for it in later years. |
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