Which of the Following May Suggest That a Financial Statements

Multiple Choice

Which of the following may suggest that a financial statements are unreliable?

A) The reported profits are far less than the operating cash flow for the period.
B) The income tax expense is low compared to profits and the balance sheet shows a significant deferral.
C) Inventory valuation and revenue recognition has changed significantly.
D) There is an increase in Notes to the financial statements.
E) Modifications in general accounting policies are similar to those adopted by a large part of the industry.