A sudden improvement in operating profits in the year in which the business is being offered for sale may suggest that both revenue and expenses had been overstated during the historical period.

Question

Quizplus · Accepted Answer

A sudden improvement in operating profits in the year in which the business is being offered for sale may suggest that either revenue has been increased, possibly through one-time sales or price increases, or expenses have been understated or reduced, rather than both revenue and expenses being overstated during the historical period.

A Sudden Improvement in Operating Profits in the Year in Which