16 A sudden rise in inventory balances is likely to warning sign of: A. Understa
ID: 2704024 • Letter: 1
Question
16 A sudden rise in inventory balances is likely to warning sign of:A. Understated expenses
B. Accelerated revenue recognition
C. ineffient working capital management
17 A warning sign that a company may deferring expenses is sales revenue growing at a shower rate that:
A. Unearned revenue
B. noncurrent liabilities
C. property, plant and equipment
18 An asset write- downis least likely to indicate understastement of expenses in:
A. Prior years
B. Future years
C. The current year
16 A sudden rise in inventory balances is likely to warning sign of:
A. Understated expenses
B. Accelerated revenue recognition
C. ineffient working capital management
17 A warning sign that a company may deferring expenses is sales revenue growing at a shower rate that:
A. Unearned revenue
B. noncurrent liabilities
C. property, plant and equipment
18 An asset write- downis least likely to indicate understastement of expenses in:
A. Prior years
B. Future years
C. The current year
Explanation / Answer
16.B. Accelerated revenue recognition
17.A. Unearned revenue
18.B. Future years