Which of the Following Is True for Red Flags Associated

question 116

Multiple Choice

Which of the following is true for Red flags associated with fictitious  revenues?

• A) Slow growth or usual profitability, when not compared to other companies in the same industry.
• B) Usual growth in the number of days purchase in receivables
• C) A significant volume of sales to entries whose substance and ownership is not known.
• D) A usual surge in purchase by a majority of units within a company, or of purchase recorded by corporate headquarters.

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Definitions:

Intercompany Scope

Relates to operations or activities that occur between or involve more than one company within the same corporate structure.

Market Responsiveness

The ability of a company to recognize, react to, and meet changing market demands and customer needs promptly and effectively.

Supply Chain

The interconnected network of entities, including suppliers, manufacturers, and retailers, involved in producing and delivering a product or service from raw material to end consumers.

Logistical Revenue

The income generated from activities related to the movement and storage of goods, as well as services provided in the logistics supply chain.