Which of the following statements is false regarding accounts receivable reporting? Multiple Choice O O Growth...
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Which of the following statements is false regarding accounts receivable reporting? Multiple Choice O O Growth in accounts receivable could exceed sales growth because a firm allows its customers more time to pay. Many irregularities in receivables recognition can be discovered by tracking the relationship between changes in sales and changes in receivables. When a company adopts an aggressive revenue recognition policy, it can lead to significant journal entries of sales returns in later periods. When a firm's sales growth exceeds its growth in receivables, it could be an indication of aggressive revenue recognition policies. Which of the following statements is false regarding accounts receivable reporting? Multiple Choice O O Growth in accounts receivable could exceed sales growth because a firm allows its customers more time to pay. Many irregularities in receivables recognition can be discovered by tracking the relationship between changes in sales and changes in receivables. When a company adopts an aggressive revenue recognition policy, it can lead to significant journal entries of sales returns in later periods. When a firm's sales growth exceeds its growth in receivables, it could be an indication of aggressive revenue recognition policies. Which of the following statements is false regarding accounts receivable reporting? Multiple Choice O O Growth in accounts receivable could exceed sales growth because a firm allows its customers more time to pay. Many irregularities in receivables recognition can be discovered by tracking the relationship between changes in sales and changes in receivables. When a company adopts an aggressive revenue recognition policy, it can lead to significant journal entries of sales returns in later periods. When a firm's sales growth exceeds its growth in receivables, it could be an indication of aggressive revenue recognition policies.
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Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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