Chapter 12, Problem 12.8APEM

1)

To determine

To classify: Decrease in the allowance for uncollectible accounts as conservative or aggressive accounting practice.

To determine

To classify: a reversal in the previous write down of inventory accounts as conservative or aggressive accounting practice.

To determine

To classify: An increase in the estimated useful life used to calculate depreciation expense as conservative or aggressive accounting practice.

To determine

To classify: A decrease in the liability reported for litigation as conservative or aggressive accounting practice.

2)

To determine

If there is a Common thing for all of the adjustments mentioned

3)

To determine

The way the company’s cash balance is affected by the adjustments mentioned

4)

To determine

The concern about the earnings management of the company due to year-end adjustments