Question

Which of the following accounting warning signs is most likely to indicate manipulation of reported operating cash flows?

Higher estimated salvage values than are typical in a firm’s industry.

Capitalizing purchases that comparable firms typically expense.

More aggressive revenue recognition methods than comparable firms.

a.

 

Higher estimated salvage values than are typical in a firm’s industry.

b.

 

Capitalizing purchases that comparable firms typically expense.

c.

 

More aggressive revenue recognition methods than comparable firms.

 



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