Author Question: Which of the following items should alert the analyst to the potential for manipulation when ... (Read 64 times)

arivle123

  • Hero Member
  • *****
  • Posts: 569
Which of the following items should alert the analyst to the potential for manipulation when analyzing accounts receivable and the allowance for doubtful accounts?
 
  a. Sales, accounts receivable and the allowance for doubtful accounts are all growing at approximately the same rate.
  b. A company lowers its credit standards and also increases the balance in the allowance for doubtful accounts.
  c. Accounts receivable is growing at a large rate and the allowance for doubtful accounts is decreasing.
  d. An analysis of the Valuation and Qualifying Accounts schedule required in the Form 10-K reveals that the amounts recorded for bad debt expense are close in amount to the actual amounts written off each year.

Question 2

The bank statement will show
 a. the beginning bank balance.
   b. the balance on deposit at the end of the month.
   c. any deductions from the bank statement balance.
   d. the amounts of checks paid during the month.
   e. all of these.



harveenkau8139

  • Sr. Member
  • ****
  • Posts: 304
Answer to Question 1

a

Answer to Question 2

e



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

For a complete list of videos, visit our video library