单选题

An analyst has made three observations in his worksheets about a company that he is reviewing. Which of the observations most likely reduces the quality of earnings of the company? The company:

A、 reported for the first time an asset titled "Deferred customer acquisition costs."
B、 has reduced its estimate of the expected useful life of computer equipment from 8 years to 5 years.
C、 entered into long-term leases for its manufacturing equipment instead of purchasing it and recorded the leases as capital leases.

【正确答案】 A

【答案解析】

A is correct. An asset such as "deferred acquisition costs" could indicate the company is deferring current period expenses to future periods, which is a warning sign and an indication of lower quality earnings.