16 A sudden rise in inventory balances is likely to warning sign of: A. Understa

Question

16 A sudden rise   in inventory balances is likely to warning sign of:



A. Understated expenses







B. Accelerated revenue recognition






C. ineffient working capital   management















17 A warning sign that a company may   deferring expenses is sales revenue growing at a shower rate that:
A. Unearned revenue







B. noncurrent liabilities







C. property, plant and equipment
















18 An asset write- downis least likely   to indicate understastement of expenses in:


A. Prior years








B. Future years








C. The current year






















16 A sudden rise   in inventory balances is likely to warning sign of:



A. Understated expenses







B. Accelerated revenue recognition






C. ineffient working capital   management















17 A warning sign that a company may   deferring expenses is sales revenue growing at a shower rate that:
A. Unearned revenue







B. noncurrent liabilities







C. property, plant and equipment
















18 An asset write- downis least likely   to indicate understastement of expenses in:


A. Prior years








B. Future years








C. The current year

Explanation / Answer

16.B. Accelerated revenue recognition

17.A. Unearned revenue

18.B. Future years

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