Which of the Following Actions May Lead to Sales Adjustment

question 38

Multiple Choice

Which of the following actions may lead to sales adjustment transactions being used to conceal thefts of cash received from customers?

• A)Overstating discounts
• B)Recording fictitious sales returns
• C)Writing off customers' balances as uncollectible
• D)Misclassifying receivables as current or noncurrent

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Definitions:

Option

In finance, it refers to a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

Observations

Data points or individual pieces of information collected during a study or research.

Simple Linear Regression

An analytical technique that utilizes a linear equation to depict the connection between a single independent variable and a dependent variable.

Independent Variables

Variables that are manipulated or controlled in an experiment to test the effects on dependent variables, without being influenced by other variables in the study.