Strange financial statement relationships that are examples of analytical anomalies include all of the following except:
A) Increased revenues with decreased inventory.
B) Increased revenues with increased cash flows.
C) Increased revenues with decreased receivables.
D) Increased inventory with decreased payables.

Question

Quizplus · Accepted Answer

A: Incorrect. This relationship should raise suspicions.
B: Correct. This relationship makes sense.
C: Incorrect. This relationship should raise suspicions.
D: Incorrect. This relationship should raise suspicions.

Strange Financial Statement Relationships That Are Examples of Analytical Anomalies