Examples of characteristics that indicate a company may be more risky with respect to the revenue process include all of the following, except:
A)Changes in sales prices or customers are infrequent.
B)The pricing structure is complex or is based on estimates.
C)There is a large volume of transactions is carried out.
D)The company depends on a single or on very few customers.

Question

Quizplus · Accepted Answer

Changes in sales prices or customers being infrequent would actually indicate that the company is less risky with respect to the revenue process as there is likely to be more stability and predictability in the revenue stream. B, C, and D all indicate potential risks in the revenue process, such as difficulty in accurately determining revenue, increased likelihood of errors or fraud, or vulnerability to a loss of revenue if a key customer goes out of business or switches to a competitor.

Examples of Characteristics That Indicate a Company May Be More