The Main Difference Between a Discretionary and Nondiscretionary Accrual Is

The main difference between a discretionary and nondiscretionary accrual is:

A) Discretionary accruals are items that management has full control over
B) Discretionary accruals are based on changes in the fundamental performance of the firm
C) Discretionary accruals arise from transactions considered normal for the firm
D) Discretionary accruals always lead to an increase in earnings

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free