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Basic Question 3 of 4
In the Beneish model, which variable could MOST LIKELY indicate inappropriate revenue recognition?
B. GMI (gross margin index)
C. SGAI (sales, general, and administrative expenses index)
A. DSR (days sales receivable index)
B. GMI (gross margin index)
C. SGAI (sales, general, and administrative expenses index)
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe how to evaluate the quality of a company's financial reports;
evaluate the quality of a company's financial reports;
CFA® 2025 Level II Curriculum, Volume 2, Module 14.