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To the extent that investors are aware of the possible use of revenue recognition policies that overstate revenues (even though, for a specific firm, they
To the extent that investors are aware of the possible use of revenue recognition policies that overstate revenues (even though, for a specific firm, they may not know the extent to which that firm is overstating), what is the effect on the operation of the capital market? Explain. A good answer will draw on the concept of an information system.
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