Certain conditions are often present when a manager prepares deliberately misstated financial statements.Which of the following is NOT such a condition?
A)Unfavourable industry conditions.
B)Lack of working capital.
C)Low debt.
D)Slow customer collections.

Question

Quizplus · Accepted Answer

Low debt is not a condition that would lead a manager to prepare deliberately misstated financial statements. The other options, unfavorable industry conditions, lack of working capital, and slow customer collections are conditions that could create pressure on a manager to manipulate financial statements to make the company appear more profitable or financially stable than it really is.

Certain Conditions Are Often Present When a Manager Prepares Deliberately