Increase in receivables as compared to last period is a factor predicting financial statement fraud.

Name: Increase in receivables as compared to last period is a factor predicting financial statement fraud.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in receivables compared to the last period can indicate that a company is recording revenues that have not been earned or are not collectible, which is a red flag for potential financial statement fraud.

Increase in Receivables as Compared to Last Period Is a Factor