Horizontal analysis is a method that:
A. Examines financial statement numbers from period to period.
B. Examines percent changes in account balances from period to period.
C. Examines transactions from period to period.
D. None of the above.
Answer: B
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Fraud Chapter 12
- Primarily occurring at the end of the year in an attempt to inflate sales, the practice of shipping more items to distributors than they can sell in a reasonable time period is known as:
- Which of the following is a common way to perform financial-statement analysis while searching for revenue-related analytical symptoms?
- Identify which ratio is correctly linked to the information it could reveal about the company's potential for revenue fraud.
- Each of the following illicit revenue transactions is correctly linked with the financial statement accounts involved except:
- All of the following ratios are useful in detecting large revenue frauds except:
- Which of the following is a possible scheme for manipulating revenue when returned goods are accepted from customers?
- The most common way to overstate revenues is to:
- The asset turnover ratio measures:
- Which financial ratio is not useful in detecting revenue-related fraud?
- Accounts that can be manipulated in revenue fraud include all of the following except:
- Last-minute revenue adjustments, unsupported balance sheet amounts, and improperly recorded revenues are examples of:
- In order to analyze financial statements for fraud, an auditor or fraud examiner should consider all of the following except:
- Which of the following ratios would not generally be used to look for inventory and cost of goods sold related frauds?
- When looking for inventory fraud, an important question to ask is:
- Which of the following is not an inventory-related documentary symptom?
- Lifestyle symptoms are most effective with:
- Comparing recorded amounts in the financial statements with the real-world assets they are supposed to represent would be most effective in detecting:
- Adding fictitious receivables will usually result in a(n):
- Reported revenue and sales account balances that appear too high are examples of:
- Why might a company want to understate net income?
- The most common account(s) manipulated when perpetrating financial statement fraud are: