Unformatted text preview: Alternatively, from a management standpoint, the ratio may imply that assets are underemployed. ACCOUNT POSSIBLE BUSINESS REASON FOR THE CHANGE POSSIBLE ERROR IN THE ACCOUNT 1 Cash-Big City National Bank The company may have borrowed funds. Fictitious entries may have been made to overstate each. 2 Accounts Receivable The company may not be collecting receivables as quickly as in the past. Fictitious sales may have been recorded. 3 Allowance for Doubtful Accounts The company may be expecting a lower proportion of uncollectible accounts. The allowance may be understated....
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This note was uploaded on 11/13/2011 for the course ACCT 470 taught by Professor Fdsafd during the Summer '09 term at Franklin.
- Summer '09