The second category of misstatements is "_______," which includes the failure to record deferred revenue obligations or normal accruals.
A)liabilities, payables, reserves, and accrual estimate failure
B)expenses, payables, and reserves
C)expense recording issues
D)debt and equity issues

Question

Quizplus · Accepted Answer

The statement mentions failure to record deferred revenue obligations or normal accruals, which are both related to liabilities, payables, reserves, and accrual estimates. Choice B only mentions expenses and reserves, while choice C only mentions expense recording issues. Choice D is unrelated to the topic of misstatements in financial reporting.

The Second Category of Misstatements Is "_______," Which Includes the Failure