- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 14. Evaluating Quality of Financial Reports
- Subject 4. Evaluate the Earnings Quality of a Company
CFA Practice Question
Which one of these techniques is an example of the "revenue mis-statement issue"?
B. Selling to an affiliated party.
C. Creating income by reclassification of balance sheet accounts.
A. Recording investment income as revenue for a grocery chain.
B. Selling to an affiliated party.
C. Creating income by reclassification of balance sheet accounts.
Correct Answer: B
A and C are examples of "revenue classification issue".
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