- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 10. Financial Reporting Quality
- Subject 4. Detection of Financial Reporting Quality Issues
CFA Practice Question
Indicators of low-quality revenue include large ______.
II. decreases in accounts receivable
III. increases in unearned revenue
IV. decreases in unearned revenue
I. increases in accounts receivable
II. decreases in accounts receivable
III. increases in unearned revenue
IV. decreases in unearned revenue
Correct Answer: I and IV
The earnings attributable to growth in receivables or contraction in unearned revenues cannot be sustainable.
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