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A Company's Reported Earnings Are $2,000 and Cash Flows Are

Question 131

Multiple Choice

A company's reported earnings are $2,000 and cash flows are $1,600. Based on economic conditions during the year, the company booked allowances of $150. As a result of contractual incentives, the company booked a further $250 in accruals. What is the total of the excessive accruals?


A) $150
B) $250
C) $400
D) $1,600

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