Which of the following is the most suspicious financial statement relationship?
A) Increased revenue with decreased inventory.
B) Decreased production with decreased scrap.
C) Increased receivables and increased revenue.
D) None of the above. All are unsuspicious financial statement relationships.

Question

Quizplus · Accepted Answer

A: Correct. We should expect revenue to decrease with decreased inventory. B, C, and D are not suspicious relationships.

Which of the Following Is the Most Suspicious Financial Statement