According to Beneish, Which of the Following Factors Are Predictive

question 4

Multiple Choice

According to Beneish, which of the following factors are predictive of financial statement fraud?

• A) Sales/Total assets.
• B) Decrease in sales growth in the current period.
• C) Increase in selling, general and administrative expenses.
• D) Decline in gross margin as a percent of sales.

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Definitions:

Economic Time

Economic time refers to a period characterized by specific economic conditions such as growth, recession, inflation, or deflation.

Cultural Perception

Refers to how culture shapes the way individuals interpret and understand the world around them.

Circular Time

A concept of time viewed as cyclical, often found in certain cultures and philosophies, contrasting with the linear perception of time.

Usage Situations

Contexts or environments wherein a product or service is utilized, affecting consumer behavior and marketing strategies.