CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

Large increases in accounts receivable or large decreases in unearned revenue are financial indicator of potential for revenue ______ issues.
A. misstatement
B. acceleration
C. classification
Explanation: Large variations in these accounts are warnings signs.

User Contributed Comments 3

User Comment
alles why not B? Both situations could mean revenue acceleration.
ascruggs92 I put B too, but now that I am reading it revenue acceleration is not an "issue," it is a product of aggressive accounting, which leads to intentional or unintentional misstatements.
Swoods2 "revenue acceleration" usually has a negative connotation and i see it as a type of misstatement. both examples above would be rev acceleration
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