Which of the Following Is the Most Common Type of Fraudulent

question 96

Multiple Choice

Which of the following is the most common type of fraudulent financial reporting?

• A)Capitalizing major overhauls to operating equipment.
• B)Deferring service revenue until it is delivered to customers.
• C)Including as sales inventory sold with the right to return.
• D)Excluding a contingent liability that has been settled.

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Definitions:

Accumulated Depreciation

Accumulated Depreciation is the total amount of depreciation expense that has been allocated to a tangible asset since it was put into use, reducing its book value.

Carrying Amount

The net amount at which an asset or liability is recognized in the balance sheet, after deducting any accumulated depreciation, amortization, or impairment.

Cost

The amount of money or resources expended to acquire an asset, produce goods, or offer a service.

Intangible Asset

This is an asset that lacks physical substance, such as patents, trademarks, and goodwill, yet offers economic value to its owner.