Fraud Examination 4th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht ,Mark Zimbelman

Exercise 114

Recognizing something as a revenue instead of as a liability has a positive effect on the reported financial statements because:
A) It understates liabilities.
B) It overstates revenues.
C) It overstates net income.
D) It overstates assets.
E) All of the above.
F) a, b, and c are correct.