Revenue and accounts receviable | Financial markets homework help

 

Perpetrators of improper revenue recognition schemes often attempt to  offer the defense that recognizing future periods’ revenue in the  current period is only a “timing” error. Discuss whether the fact the  over stated revenue will likely be earned in later periods reduces the  impact of the overstatement or reduces the responsibility of the  perpetrator to report revenue accurately in the current period. Why is  an “increase in accounts receivable as a percentage of sales” a signal  of improper revenue recognition?

Support your answer using both the required text and external  resources, addressing the key points (concerns). Responses should be  unique and incorporate your personal perspectives that are supported by  reading and research. Initial comments should be 1-2 paragraphs in  length for each point. Follow-up postings should not exceed a paragraph  and should add additional information or perspective to the original  author’s comments.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>