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Which is a false statement?

A ""day's sales in receivable index"" for manipulators is 1.5 to 1.
-The ""gross margin index"" for manipulators is 1.2 to 1.
-The ""asset quality index"" for manipulators is 1.25 to 1.
-The ""sales growth index"" for manipulators is 60 percent.
-The ""total accruals to total assets index"" for manipulators is .018.

User Voitcus
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1 Answer

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Final answer:

Without specific context, it is challenging to determine the falsehood of a financial ratio or index related to potential manipulative activities by companies. The given values such as a total accruals to total assets index of 0.018 depend on the industry and accounting standards for their interpretation.

Step-by-step explanation:

The question seeks to identify a false statement among those provided, which relate to financial ratios and indices that might be used to identify financial manipulation by companies. Assessing the veracity of such statements typically requires an understanding of normative values for these ratios in the context of financial analysis and forensic accounting. For example, a total accruals to total assets index of 0.018 would be equivalent to 1.8%, which might not be unusual depending on the industry and accounting practices. However, it's important to note that without context, such as industry averages or additional financial information, it is difficult to definitively label these indices as indicative of manipulative behavior on their own.

User Datsik
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