There Are Three Main Types of Revenue Manipulations

question 32

Multiple Choice

There are three main types of revenue manipulations.Which of the following revenue manipulations affects the occurrence objective?

• A)recording subsequent period sales as current period sales
• B)the use of "bill and holds" (goods are invoiced but not shipped)
• C)understatement of bad debts
• D)creation of fictitious sales that are misclassified as revenue

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Definitions:

Van

A type of vehicle used for transporting goods or people, typically larger than a common car but smaller than a truck.

Lump-sum Purchase

The acquisition of an asset or multiple assets in a single transaction for a single amount, instead of making payments over time.

Straight-line Method

A method of calculating depreciation and amortization by evenly distributing the cost of an asset over its useful life.

Salvage Value

The projected value at which an asset can be sold after its period of usefulness, utilized in the computation of depreciation costs.