Which of the Following Would Be Increased by an Accounting

question 10

Multiple Choice

Which of the following would be increased by an accounting policy change involving the recognition of accounts receivable sooner?

• A) Revenue
• B) Expense
• C) Liability
• D) None of the above

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Definitions:

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against the person, raising questions about the voluntariness of the act.

Scienter

In legal contexts, scienter is the knowledge or intent to deceive, defraud, or violate statutes or regulations.

Representations

Statements or assertions made by one party to another, often regarding the condition or status of something, which can impact agreements or contracts.

Innocent Misrepresentation

A misrepresentation made without fault or knowledge of its falsity, which may allow the misled party to void the contract but not claim damages.