In considering the effectiveness of evidence gathering procedures, it was found that most companies have adjustments. Research also shows that ________.
A) both receivables and payables are usually overstated
B) receivables are usually overstated and payables are usually understated
C) receivables are usually understated and payables are usually overstated
D) both receivables and payables are usually understated

Question

Quizplus · Accepted Answer

Receivables are often overstated due to uncollectible accounts not being written off, while payables are understated due to liabilities not being fully recorded.

In Considering the Effectiveness of Evidence Gathering Procedures, It Was