Which of the following is a method used by companies to fraudulently inflate revenues?
A)use of hidden "side letters" giving the customer an irrevocable right to return the product.
B)recording of fictitious sales.
C)shipment of product not ordered by customers.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the options listed are methods used by companies to fraudulently inflate revenues. Using hidden "side letters" allows companies to book revenue even if the customer may return the product later. Recording fictitious sales involves claiming revenue for products or services that were never actually sold. Shipping product not ordered by customers leads to an overstatement of revenue since it appears as though customers are buying more product than they actually are.

Which of the Following Is a Method Used by Companies