This Term Refers to Moving the Current Accounting Period's Cut-Off

question 54

Multiple Choice

This term refers to moving the current accounting period's cut-off date forward to include sales that correctly occur in a future period.This activity occurs so that the selling company can inflate their sales in the current period.

• A)Channel stuffing
• B)Leaving sales open
• C)Shipping reversal
• D)Sales deferral

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Definitions:

Shares

Shares represent portions of equity in a company or an investment, entitling holders to a proportional share of any distributed profits, known as dividends, when they are announced.

Capital Gain

The profit from the sale of a capital asset, such as stocks or real estate, where the sale price exceeds the purchase price.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Shares

Shares represent units of ownership interest in a company or financial asset that provide an equal distribution in any profits, if any are declared, in the form of dividends.