If Fictitious Sales Were Recorded and the Fictitious Accounts Receivable

question 8

Multiple Choice

If fictitious sales were recorded and the fictitious accounts receivable were written off as bad debt expense,________.

• A)income would be overstated
• B)income would be understated
• C)income would not be misstated
• D)accounts receivable would be understated

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Definitions:

Identification Tag

A piece of identification worn or carried by a person or placed on an item, which provides specific information about the wearer or the item.

Small Hospital

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Architectural Firm

An architectural firm is a business specializing in providing services related to the design, planning, and oversight of construction projects.

Error

A mistake or inaccuracy in something that is not correct.