Which a firm total accruals are equal to

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Problem 1: All of the following conditions could suggest that a company is recognizing revenues too early except:

A. Excessive warranty expenditures.

B. A decrease in days that accounts receivable are outstanding.

C. Large and volatile amounts of uncollectable accounts receivable.

D. Unusually large amounts of returned goods.

Problem 2: Accruals can serve as a means of manipulating earnings. A firm's total accruals are equal to:

A. The difference between income from continuing operations and other comprehensive income.

B. The difference between income from continuing operations and cost of goods sold.

C. The difference between income from continuing operations and cash flow from operations.

D. The difference between cash flow from operations and cash flow from financing.

Reference no: EM132930621

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