Timing Differences Such as Bringing Forward the Recognition of Revenues

question 93

Multiple Choice

Timing differences such as bringing forward the recognition of revenues and delaying the recognition of expenses is an example of _______.

• A)fraudulent financial reporting
• B)performance materiality
• C)planning materiality
• D)balance sheet benchmarks

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Definitions:

Cash Concentration

A treasury management strategy where a company consolidates its cash balances into one account to optimize liquidity and manage its cash more efficiently.

Main Bank Account

The primary checking or savings account used by an individual or business for managing their daily financial transactions and cash flow.

Multiple Accounts

Refers to having more than one account, often in financial or online contexts, to manage different aspects.

Disbursement Float

The time delay between when a check is written and when it is actually deducted from the payer's account.