A business owner may overstate revenue by
A) Failing to deduct from revenue products returned by customers
B) Billing customers for products not ordered
C) Booking the entire value of a multiyear contract in the current year
D) Counting interest income as revenue
E) All of the above

Question

Quizplus · Accepted Answer

All of the choices listed can result in an overstatement of revenue. Failing to deduct returned products or billing for products not ordered can increase revenue that was not actually earned. Booking the entire value of a multiyear contract in the current year can result in revenue being recognized before it is earned. Counting interest income as revenue can also lead to an overstatement of revenue.

A Business Owner May Overstate Revenue by