Which of the following indicates accounting manipulations in the financial statements?

Select one:

a. Company C operates in providing telecommunication services and does not show a transmission cost, whereas Company D is engaged in the same industry and has a substantial amount of transmission costs.

b. Company A does not show an increase in capital assets, whereas Company B is operating in the same industry and has increased its capital assets by 50%. Both companies are engaged in financial consulting.

c. Company E's sales are 40% lower than the sales of Company F. Both are engaged in the production of TV shows.

Which of the following may be considered a warning sign indicating a manipulation of financial statements by an analyst?

I. Excessive non-recurring costs classified in the income statement

II. Net profit of 2% in the first three quarters, followed by net profit of 17% in the 4th quarter

III. The number of days of sales outstanding was 15 days. The corresponding figure for the industry was 75 days. The company is engaged in providing engineering consultancy services, and the customers generally pay after the design submitted by the company has been approved by the customer's construction team, which takes roughly 2-3 months.

Select one:

a. I, II & III only

b. I & II only

c. III only