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)early shipment of goods,recognizing revenue before the customer requests delivery.
D)shipment of a larger quantity of goods by combining customer orders.
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

The shipment of a larger quantity of goods by combining customer orders may actually result in understating revenues by reducing the number of shipments made, and therefore the revenue recognized. All of the other choices are methods to overstate revenues and receivables.

Which of the Following Is Not a Method to Overstate