Which of the following would a company be most likely to overstate on its balance sheet if the company was trying to mislead potential external investors or creditors?

Question

Quizplus · Accepted Answer

Accounts Receivable represent money owed to the company by its customers. If a company wants to make itself look more attractive to potential external investors or creditors, it may overstate its accounts receivable to make it appear as though it is collecting more money from customers than it actually is. This would make the company look more financially stable than it really is.

Which of the Following Would a Company Be Most Likely