Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the incorrect option from the proposed statements that relates to the given condition.

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Answer 1

Question

Chapter 9, Problem 11CYBK

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

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What is a good response to.... One of the ways that financial information can fraudulently be reported to stakeholders is by overstating revenues. The motivation for this would be to show stakeholders that the company is exceeding expectations- or performing well. This can be done by recording revenues in a period they were not actually accrued in (like saying that revenues were earned before a product order was fulfilled), recording fictitious revenues, and even changing expenses to reflect incorrect periods or amounts. This “m” would be considered manipulation- because the accountant would be manipulating the financial statements (like the income statement) for potential personal gain. One case where this occurred was “last year involving Marvell Technology Group, the company was charged with pulling in sales from future quarters to close the gap between actual and forecasted revenue. The pull-ins amounted to as much as 16% of the company’s total quarterly revenues, according to the…

Managers are often faced with conditions that may cause earnings to be managed. There is a difference between managing income and manipulating earnings. Excluding the ethical and fraud issues associated with managing earnings: Identify conditions that would lead an analysist to expect that management might attempt to manage earnings upward and, Identify conditions that would lead an analysist to expect that management might attempt to manage earnings downward.

1. Of the following, choose the one that describes a situation where liabilities and expenses are manipulated to make a company appear less profitable? A. Liabilities are capitalized to increase revenues. B. Failure to record insurance expense for the period. C. Failure to record employee payroll earned but not paid as of period end. D. Failure to record warranty costs when the facts suggest that disclosure is more appropriate accounting treatment. E. None of the above.

Answer 2

Question

Chapter 9, Problem 11CYBK

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 9, Problem 11CYBK

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 9, Problem 11CYBK

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 11CYBK

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

Answer 6

Chapter 9, Problem 11CYBK

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

Answer 7

Chapter 9, Problem 11CYBK

To determine

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 9 - In the revenue cycle, the most significant...Ch. 9 - Which of the following statements is true...Ch. 9 - Prob. 4CYBK Ch. 9 - Prob. 7CYBK Ch. 9 - Prob. 8CYBK Ch. 9 - Prob. 9CYBK Ch. 9 - Prob. 10CYBK Ch. 9 - Prob. 11CYBK Ch. 9 - Prob. 12CYBK Ch. 9 - Prob. 13CYBK

Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the incorrect option from the proposed statements that relates to the given condition.

Solution Summary: The author explains that the correct option is option D, because the management may not always be correct in misstating the revenue due to the imminent possibility of facing bankruptcy or winding up or liquidation.

Videos

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.

Want to see the full answer?

Chapter 9 Solutions

Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the incorrect option from the proposed statements that relates to the given condition.

Solution Summary: The author explains that the correct option is option D, because the management may not always be correct in misstating the revenue due to the imminent possibility of facing bankruptcy or winding up or liquidation.

Videos

Introduction: Revenue transaction involves exchange of goods and services for the cash payments or for credit. To select: Choose the incorrect option from the proposed statements that relates to the given condition.

Want to see the full answer?

Chapter 9 Solutions

Introduction:

Revenue transaction involves exchange of goods and services for the cash payments or for credit.

To select:

Choose the incorrect option from the proposed statements that relates to the given condition.