Smart fraudsters will avoid financial statement fraud involving the overstatement of ____ because of the compounding effect from period to period
a. revenue
b. accounts receivable
c. inventory
d. fixed assets
c
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Correct. Overstating inventory in period 1 makes it necessary for perpetrators to overstate ending inventory in period 2 by an even larger amount in order to both offset the effect of having an overstated beginning inventory and to commit additional fraud.
d. Incorrect.
You might also like to view...
The net sales for a company were $3,600,000; gross profit was $600,000; and net income was $260,000 . The net income to net sales ratio would be
a. 7.22%. b. 16.67%. c. 23.89%. d. 43.33%.
Sometimes a rise of only 10 percent in consumer demand can cause as much as a 200 percent rise in business demand for products for the next period. This is an example of ________
A) inelastic demand B) direct purchasing C) fluctuating demand D) derived demand E) a straight rebuy
Questionnaires on situational leadership often ask for respondents to look at specific applications of leadership styles within situations, which may result in _____.
A. results that are not in favor of situational leadership B. a wide range of responses that are hard to validate C. biased results in favor of situational leadership D. negative perceptions toward organizations
Identify whether each of the following items 1 through 8 would on appear on the bank side or the book side of a bank reconciliation.____ 1. Bank service charges____ 2. Outstanding checks____ 3. Deposits in transit____ 4. NSF check____ 5. Interest on a checking account____ 6. The company properly wrote a check for $95.80 that the bank incorrectly paid as $9.58.____ 7. The bank printed checks for the depositor for a fee.____ 8. The bank collected a $1,000 note for the depositor.
What will be an ideal response?