There Are Three Main Types of Revenue Manipulations

question 48

Multiple Choice

There are three main types of revenue manipulations.Which of the following revenue manipulations affects the valuation 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:

Efficient Use

The utilization of resources in a manner that maximizes the production of goods and services.

Resources

Assets or inputs available for use in the production process, including natural, human, and capital resources.

Opportunities

Refer to situations where individuals or organizations can exploit conditions to achieve goals or positive outcomes.

Efficient

The most efficient employment of resources to attain the intended result while minimizing waste or exertion.