If a company reports sales in the current period when management knows it has little chance of collecting payment from customers,it would fraudulently increase:
A)Deferred Revenue.
B)revenue in the current period.
C)net expenses in the current period.
D)all of the answers are acceptable.

Question

Quizplus · Accepted Answer

Reporting sales in the current period without the expectation of collecting payment is fraudulent revenue recognition, which would increase revenue in the current period. The other options, deferred revenue and net expenses, are not affected by fraudulent revenue recognition.

If a Company Reports Sales in the Current Period When