If Fictitious Credit Sales Were Recorded, and the Fictitious Accounts

question 55

Multiple Choice

If fictitious credit sales were recorded, and the fictitious accounts receivable were later directly written off as bad debt expense,

• A)income would be overstated.
• B)income would be understated.
• C)income would not be misstated.
• D)accounts receivable would be understated.

---

Definitions:

External Environment

The external forces, including economic, political, technological, and demographic factors, that can affect an organization's operations and outcomes.

SWOT Analysis

A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

SWOT Analysis

A strategic planning tool that identifies Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Strategic Plan

A systematic process for envisioning a desired future, transforming this vision into broadly defined goals or objectives,