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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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
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.