There are three main types of revenue manipulations.Which of the following revenue manipulations affects the occurrence objective?
A)recording subsequent period sales as current period sales
B)the use of "bill and holds" (goods are invoiced but not shipped)
C)understatement of bad debts
D)creation of fictitious sales that are misclassified as revenue

Question

Quizplus · Accepted Answer

The creation of fictitious sales that are misclassified as revenue affects the occurrence objective because it inflates revenue without a corresponding economic transaction occurring. This manipulation intentionally misrepresents the existence of revenue-generating transactions, therefore affecting the occurrence objective.

There Are Three Main Types of Revenue Manipulations