Common accounting anomaly fraud symptoms involve problems with various data and books of accounts. Which of the following is NOT one among them?

a. Faulty journal entries
b. Inaccuracies in source documents
c. Rounding adjustments
d. Inaccuracies in ledgers


c
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Correct.
d. Incorrect.

Business

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It is not acceptable to erase accounting information because it suggests you are trying to hide something

Indicate whether the statement is true or false

Business

Which of the following would the auditor most likely do when testing the valuation assertion for inventory?

a. Confirm inventory on consignment. b. Examine receiving reports for inventory, tracing the recorded amounts. c. Observe the taking of physical inventory. d. Vouch inventory purchases to vendor invoices..

Business

Usually, a company must make estimates in the preparation of financial statements as of a given date

Indicate whether the statement is true or false

Business

Amengual Corporation began operations in 2011 and had operating losses of $400,000 in 2012 and $300,000 in 2013 . For the year ended December 31 . 2014, Amengual had a pretax financial income of $600,000 . For 2012 and 2013 . assume an enacted tax rate of 30 percent, and for 2014 a 35 percent tax rate. There were no temporary differences in any of the years. In Amengual's 2014 income statement,

how much should be reported as income tax expense? a. $0 b. $30,000 c. $180,000 d. $210,000

Business