Question

Select all that apply which of the following could a vendor providing cloud computing services use to overstate their revenues?

o sell a cloud subscription to a pilot population but book it as if it were for the whole company
o provide a cloud product for free allocating revenues to other modules
o allocate no revenues to cloud
o computing a book
o all revenues for other modules lump
o all services together and record them all as cloud services

Answer 1

Cloud computing vendors might overstate their revenues by incorrectly booking pilot subscriptions as if for the full company, allocating revenues to other modules for free products, and lumping all services together as cloud services.

Step-by-step explanation:

Vendors providing cloud computing services may attempt to overstate their revenues through various methods. Three common tactics that could be used include:

• Selling a cloud subscription to a pilot population and inaccurately booking it as if it were for the entire company.
• Providing a cloud product for free to customers but improperly allocating revenues to other modules, creating the illusion of higher sales.
• Lumping all services together and incorrectly recording them as cloud services to inflate revenue figures.

These strategies misrepresent the true financial performance of the company by recognizing revenue that is not earned according to the accounting standards, potentially misleading investors and other stakeholders.