Which of the Following Actions Is More Likely to Be

question 117

Multiple Choice

Which of the following actions is more likely to be a result of error rather than fraud?

• A)consignment sales are knowingly recorded as revenue
• B)orders are shipped to a customer with a bad credit rating
• C)fictitious revenue transactions are recorded and reported
• D)subsequent period revenue is deliberately recorded in the current period

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Definitions:

Efficiency Wages

Wages that are deliberately set above the market equilibrium to increase productivity, reduce turnover, or improve the quality of applicants.

Labor Surplus

A situation in the labor market where the supply of labor exceeds the demand for labor, often leading to unemployment.

Structural Unemployment

An unemployment scenario where there's an incongruence between the skillsets provided by the labor market and those needed by employers.

Efficiency Wages

Wages that are deliberately set above the market equilibrium to increase productivity by attracting better applicants, reducing turnover, or increasing worker effort.