Which of the Following Is Not a Method to Overstate

question 42

Multiple Choice

Which of the following is not a method to overstate revenues and receivables?

• A)recording fictitious sales,recognizing revenue on shipments that were not made.
• B)early recognition of sales,recognizing revenue in the current year even though shipment of goods or providing the service occurs in the following year.
• C)recognizing cost of goods sold before the goods are invoiced.
• D)shipment of a larger quantity of goods than the customer ordered.
• E)recognition of revenue based on a swap (exchange)transactions,when the customer and the client exchanged products or services and both parties recognize revenue based on the exchange.

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Definitions:

Psychological Deficiency

A lack or shortage in psychological wellbeing, possibly related to cognitive, emotional, or social aspects of a person's life.

Need

A requirement necessary for people or organizations to achieve a desired state or outcome.

Satisfaction Deficit

A state where an individual's or group's needs, expectations, or desires are not met, leading to a sense of dissatisfaction.

Theory Y

Assumes people are willing to work, accept responsibility and are self‐directed and creative.