Which of the following manipulations would understate receivables on the financial statements?
A)Understatement of cash sales.
B)Closing the sales journal prior to year-end.
C)Closing the cash receipts journal prior to year-end.
D)Underestimating the allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

Closing the sales journal prior to year-end would result in sales not being recorded, which would understate receivables.

Which of the Following Manipulations Would Understate Receivables on the Financial