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When Revenues Are Overstated,what Is the Effect on Information That

Question 20

Multiple Choice

When revenues are overstated,what is the effect on information that outsiders receive about the company?


A) Outsiders receive inaccurate predictions about future earnings and dividends.
B) Outsiders receive accurate information about the capability of a company to continue as a going concern.
C) Outsiders receive incorrect information about the amount of future cash flow generated by the company.
D) Outsiders receive incorrect information about the current expenses incurred by the company.

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