You observe that a company's current ratio is dramatically increasing. This may indicate fraud in that:

You observe that a company's current ratio is dramatically increasing. This may indicate fraud in that: 



A. Contingent liabilities are not recorded
B. Accounts payable is understated
C. Expenses have been inappropriately capitalized as assets
D. Fixed assets are overstated
E. Two of the above are true



Answer: B


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