Answer: Raising the estimated salvage values of property, plant, and equipment (PP&E)

**Explanation:** - **Option A (Correct):** Increasing the estimated salvage values of PP&E is an example of an aggressive (non-conservative) accounting policy. This adjustment reduces depreciation expense, thereby inflating earnings in the current period. A higher salvage value lowers the depreciable base, leading to reduced annual depreciation charges compared to a zero salvage value assumption. - **Option B (Incorrect):** Changing the depreciation method from straight-line to double-declining balance is a conservative accounting choice. This method accelerates depreciation expense, reducing reported earnings in the early years of an asset's life. Conservative policies prioritize understating earnings and assets, unlike aggressive policies. - **Option C (Incorrect):** Switching to FIFO from weighted average during declining inventory prices and stable quantities is also conservative. FIFO assigns higher costs to cost of goods sold (COGS) in such scenarios, lowering gross profit and net income. This contrasts with aggressive policies, which aim to overstate financial performance. **Key Takeaway:** Aggressive accounting choices, such as inflating salvage values, aim to boost short-term financial metrics, while conservative choices, like accelerated depreciation or FIFO in declining price environments, reduce reported earnings to reflect prudence.

Author: LeetQuiz Editorial Team