Which of These Overestimates of Revenue Can Occur Within the Accounting

question 5

Multiple Choice

Which of these overestimates of revenue can occur within the accounting standards?

• A)Shipping goods prematurely to buyers without a firm order and recognising revenue when the goods are shipped
• B)Making estimates which later prove to be over-optimistic
• C)Backdating sales made during the early part of the new accounting period to the last part of the old accounting period
• D)A and B can occur within the accounting standards

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Definitions:

Missionary Salespeople

Missionary salespeople are sales representatives who promote their company’s products indirectly, often focusing on educating potential customers about the products rather than making direct sales.

Customer Problems

Issues or challenges faced by customers that can affect their satisfaction with a product or service.

Promotional Activities

Various marketing efforts aimed at increasing awareness, interest, and sales of a product or service, ranging from advertising to special events.

Sales Support Personnel

Staff members who provide assistance and resources to the sales team, aiming to make the selling process more efficient and effective.