Which of the Following Is Not a Fraud Method to Overstate

question 84

Multiple Choice

Which of the following is not a fraud method to overstate revenues?

• A) Recording future sales in the current period
• B) Recording sales of products that are out on consignment
• C) Recording sales based on F.O.B. shipping point
• D) Recording revenues of other companies by acting as a middleman

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Definitions:

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, aimed at protecting investors from fraud.

Solicitation of Proxies

The process by which shareholders are asked to delegate their voting power to representatives to vote on their behalf at shareholder meetings.

Section 12

A specific segment or part within a legal document or statute that addresses a particular point of law.

Section 14(a)

Typically refers to a provision in the Securities Exchange Act of 1934 that deals with proxy solicitations.