Which of the following accounting practices are potentially misleading or even fraudulent?
I.writing off goodwill as an extraordinary loss
II.using accrual rather than cash basis reporting
III.off-balance sheet liabilities
IV.recognizing revenues prematurely
A)I and II only
B)I, II and IV only
C)III and IV only
D)I, III and IV only

Question

Quizplus · Accepted Answer

Off-balance sheet liabilities and recognizing revenues prematurely are both potentially misleading or even fraudulent accounting practices.

Which of the Following Accounting Practices Are Potentially Misleading or Even