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Basic Question 18 of 22

Which is LEAST LIKELY to be a warning signal that a company is using aggressive accounting practices?

A. Cash provided by operations higher than net income
B. Higher-than-expected earnings in the fourth quarter of the year
C. An increase in DSO (days sales outstanding)

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe presentation choices, including non-GAAP measures, that could be used to influence an analyst's opinion

describe accounting methods (choices and estimates) that could be used to manage earnings, cash flow, and balance sheet items

describe accounting warning signs and methods for detecting manipulation of information in financial reports

CFA® 2024 Level I Curriculum, Volume 3, Module 10.