The most common technique used by management to misstate financial information is:
A) improper revenue recognition.
B) understatement of liabilities.
C) understatement of assets.
D) overstatement of expenses.

Question

Quizplus · Accepted Answer

Improper revenue recognition is the most common technique used by management to misstate financial information. This involves recognizing revenue earlier than it should be according to accounting principles, which can artificially inflate a company's financial performance.

The Most Common Technique Used by Management to Misstate Financial