7 Which of the following practices is most likely to undermi

7. Which of the following practices is most likely to undermine interperiod equity?

a. Paying for a new school building out of current operating funds

b. Paying the administrative staff of a school out of current operating funds

c. Issuing 20year bonds to finance construction of a new highway

d. Recognizing gains and losses on marketable securities as prices increase and decreas

Solution

Paying for a new school building out of current operating funds is most likely to undermine interperiod equity Option A is correct