When the Sales Return Ratio Becomes Unexpectedly ______, It Is

question 37

Multiple Choice

When the sales return ratio becomes unexpectedly ______, it is a signal that fraud or other problems could be occurring.

• A) Low
• B) High

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Definitions:

Entity Principle

The Entity Principle is an accounting concept stating that a business must be accounted for separately from its owner or any other business entity.

Revenues Earned

Income that has been generated from business activities and is recognized once the service has been provided or the goods have been delivered.

FASB Suggestion

Recommendations or guidance offered by the Financial Accounting Standards Board, which sets accounting principles in the United States.

AICPA

Stands for the American Institute of Certified Public Accountants, a professional organization of Certified Public Accountants in the United States.