Detecting Accounting Fraud 1st Edition by Cecil Jackson

Exercise 12

Which of the following would not be a signal that a company may have understated its reserve for doubtful debts?
(a) Accounts receivable increases as a percentage of sales.
(b) The reserve for bad debts decreases as a percentage of accounts receivable.
(c) The net amount for accounts receivable decreases as a percentage of total current assets.
(d) All of the above.