According to a study sponsored by The Committee of Sponsoring Organizations (COSO), the most common way to manipulate revenue accounts is by:
a. reclassifying expenses as revenues.
b. recording fictitious revenues.
c. inappropriately reducing sales returns and allowances.
d. prematurely recording revenue.
b
FEEDBACK: a. Incorrect.
b. Correct. COSO found this to be the most common way to manipulate revenue accounts.
c. Incorrect.
d. Incorrect. This is the second most common way to manipulate revenue accounts.
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