In most cases there is a lesser risk of overstatement of receivables and sales than of understatement of receivables and sales.

Question

Quizplus · Accepted Answer

In most cases, there is a greater risk of overstatement of receivables and sales because companies may be incentivized to inflate their financial performance by recognizing revenue prematurely or by overstating the amount of sales or receivables.

In Most Cases There Is a Lesser Risk of Overstatement