Discussion: Revenue And Accounts Receviable
Perpetrators of improper revenue recognition schemes often attempt to offer the defense that recognizing future periods' revenue in the current period is only a "timing" error. Discuss whether the fact the over stated revenue will likely be earned in later periods reduces the impact of the overstatement or reduces the responsibility of the perpetrator to report revenue accurately in the current period. Why is an "increase in accounts receivable as a percentage of sales" a signal of improper revenue recognition?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.