A Smart Fraudster Usually Manipulates Which Financial Record in Order

question 24

Multiple Choice

A smart fraudster usually manipulates which financial record in order to better avoid an audit trail?

• A) Income statement
• B) Balance sheet
• C) Statement of cash flows
• D) Statement of retained earnings

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Definitions:

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.