The most common account(s) manipulated when perpetrating financial statement fraud are:
A. Expenses
B. Inventory
C. Revenues
D. Accounts Payable
Answer: C
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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):
- Horizontal analysis is a method that:
- Reported revenue and sales account balances that appear too high are examples of:
- Why might a company want to understate net income?