Question

In your review of ABC Company's financials, you note that Receivables have increased approximately 200% from the previous year, while Cash has declined. Further investigation reveals that 70% of ABC's receivables were booked within 7 days of the end of the quarter. If financial statement fraud is involved, which type is most likely

Answer 1

Fictitious revenues

Step-by-step explanation:

The fictitious revenue is a revenue that do not belong to the organization but it would be added to the revenue section intentionally.

Therefore as per the given situation, in the case when the fraud is involved in the financial statement so this is a type of fictitious revnenues

hence, the same is to be considered