An analysis carried out by Huron Consulting in January 2003.in the USA showed that the main accounting issue leading to restatement of profits over the Global Financial Crisis was:
A) equity accounting
B) revenue recognition
C) capitalisation and expensing of assets
D) reserves, accruals and contingencies

Question

Quizplus · Accepted Answer

Revenue recognition was a significant issue leading to the restatement of profits during the Global Financial Crisis. This is because many companies improperly recognized revenue to meet or exceed financial projections, leading to inaccuracies in financial reporting.

An Analysis Carried Out by Huron Consulting in January 2003