(True and False) 1. Focusing on changes in financial statements from period to period can help identify...

Question:

(True and False)
1. Focusing on changes in from period to period can help identify analytical fraud symptoms.

2. Controls over inventory should be closely examined when searching for fraud symptoms.

3. The gross profit (margin) ratio is calculated by dividing gross profit by cost of goods sold.

4. Working capital turnover ratio is calculated by dividing average working capital by sales.

5. turnover is one of the most widely used ratios to analyze revenues and is a measure of the efficiency with which receivables are being collected.

6. One of the most practical ways to look for analytical symptoms of fraud is to focus on changes and comparisons within and from the Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...