Which of the Following Is a Red Flag Associated with Fictitious

question 22

Multiple Choice

Which of the following is a red flag associated with fictitious revenues?

• A) An unusual decrease in gross margin
• B) An unusual decline in the number of days' purchases in accounts payable
• C)Several unusual and highly complex sales transactions recorded close to the period end
• D) Recurring losses while reporting increasing cash flows from operations

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Definitions:

Developed Countries

Nations with a high level of industrialization, a high standard of living, and a high Human Development Index (HDI).

Sociocultural

Relating to the interactive influence of social and cultural factors on an individual's behavior and functioning.

Expressed Emotion

A measure of the family environment that is based on how much criticism, hostility, and emotional over-involvement are expressed towards a family member.

Criticism

The expression of disapproval based on perceived faults or mistakes.