Which of the following would a company be most likely to overstate on its balance sheet if the company was trying to mislead potential external investors or creditors?
A)Accounts Receivable.
B)Notes Payable.
C)Deferred Revenues.
D)Accounts Payable.

Question

Quizplus · Accepted Answer

A company would be most likely to overstate its accounts receivable on the balance sheet if it was trying to mislead potential external investors or creditors. This is because accounts receivable represent money that is owed to the company by its customers, and overstating this amount could make the company appear to be more financially stable than it actually is.

Which of the Following Would a Company Be Most Likely