Which of the following is an example of fraudulent financial reporting?
A. An employee steals inventory and the "shrinkage" is recorded in cost of goods sold.
B. An employee diverts customer payments to his personal use, concealing his actions by debiting an expense account, thus overstating expenses.
C. An employee "borrows" tools from the company and neglects to return them; the cost is reported as a miscellaneous operating expense.
D. Company management falsifies inventory count tags thereby overstating ending inventory and understating cost of goods sold.
Answer: D
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Bluefield Inc is considering a project that will require an initial investment of $75,000 and is expected to generate future cash flows of $15,000 for years 1 through 3 and $10,000 for years 4 through 8. The project's payback period is:
A) 6 years. B) 5 years. C) 4 years. D) 2.67 years.
A "bench trial" is one in which the decision is made without a jury
a. True b. False Indicate whether the statement is true or false
To enhance the degree of rareness in employee skills and abilities, organizations should develop competencies in their employees that
A. can be transferred to other organizations. B. can be duplicated. C. can provide widely-valued generic skills. D. are not equally available in the labor market.
Which of the following is an example of revenue?
A. Cash received from the sale of land for its original selling price B. Cash received as a result of a bank loan C. Cash received from investors from the sale of common stock D. Cash received from customers at the time services were provided