Which of the following is not a method to overstate revenues and receivables?
A)recording fictitious sales,recognizing revenue on shipments that were not made.
B)early recognition of sales,recognizing revenue in the current year even though shipment of goods or providing the service occurs in the following year.
C)recognizing cost of goods sold before the goods are invoiced.
D)shipment of a larger quantity of goods than the customer ordered.
E)recognition of revenue based on a swap (exchange)transactions,when the customer and the client exchanged products or services and both parties recognize revenue based on the exchange.

Question

Quizplus · Accepted Answer

Recognizing cost of goods sold before the goods are invoiced can actually result in understating revenues and receivables, not overstating them. The other choices listed are methods used to overstate revenues and receivables.

Which of the Following Is Not a Method to Overstate