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Free_Kalibri [48]
2 years ago
10

If a company using accrual-basis accounting wanted to overstate their income at the end of the fiscal year with increased shipme

nts, the two accounts that would be most at risk are:
Business
1 answer:
VashaNatasha [74]2 years ago
4 0

The two accounts that would be most at risk are: Sales and Accounts Receivable

Accrual method of accounting is an accounting method that reports on the company book  <em>revenue</em> and expenses as they occur in which assets are then adjusted when revenue and expenses are paid.

Assuming  a company or organization are to increased shipments which they are  having doubt about as to whether those shipment would either be returned or not paid for.

The company book would show increase in income and increase in account receivable as the company is yet to receive payment for the goods that were shipped.

In a situation were the goods that was returned are high which means that at the end of the fiscal year both sales and  account receivable account will be affected.

Inconclusion The two accounts that would be most at risk are: Sales and Accounts Receivable.

Learn more here:

brainly.com/question/17233434

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What are examples of explicit cost?A. the amount of money the owner could have made by investing in an alternative activity B. t
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B. the cost of the business owner’s time and labor paying for gas for a company vehicle

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4 0
3 years ago
You sold ten put contracts on Cross Town Bank stock at an option price per share of $0.85. The options have an exercise price of
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-$4,150

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What occurs when the cyclical unemployment rate is zero ?
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