Higher than usual earnings implies the company may be recognizing revenues early.

Name: Higher than usual earnings implies the company may be recognizing revenues early.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

Higher than usual earnings can indicate that the company is recognizing revenues before they are actually earned, which can lead to financial fraud and misrepresentation of the company's true financial situation. This is known as revenue recognition fraud.

Higher Than Usual Earnings Implies the Company May Be Recognizing