Which of the Following Is Least Likely to Indicate Possible

question 18

Multiple Choice

Which of the following is least likely to indicate possible financial statement fraud?

• A) Purchase of a small competitor that resulted in goodwill
• B) Transactions that generate nonoperating income
• C) An unusually large transaction that resulted in income for the organization
• D) Financing transactions between related parties

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Definitions:

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Correlation Coefficients

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1 where 1 means a perfect positive correlation and -1 means a perfect negative correlation.

Accurate Predictions

Forecasts or guesses that accurately match or describe future outcomes or events based on available data or analysis.

Correlation Coefficients

Correlation coefficients are statistical measures that quantify the degree to which two variables move in relation to each other, indicating the strength and direction of their relationship.