All of the Following Conditions Signal That Revenue Recognition May

question 68

Multiple Choice

All of the following conditions signal that revenue recognition may have been recorded too early except:

• A) large and volatile amounts of uncollectible accounts receivable.
• B) a decrease in the number of days accounts receivable are outstanding.
• C) unusually large amounts of returned goods.
• D) excessive warranty expenditures.

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Definitions:

Regression

A return to an earlier or less developed state, often in psychology referring to the adoption of behaviors not typical of the current developmental stage.

Memory

The cognitive function that allows information to be stored, retained, and recalled from the past.

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and maintain self-image.

Repression

The psychological act of excluding distressing thoughts, feelings, or memories from conscious awareness, often considered a defense mechanism.