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.

---

Definitions:

Fee Simple

The most extensive interest in real property available in law, allowing the owner absolute ownership, including the rights to sell, lease, or bequeath the property.

Life Estate

A legal interest in real property that lasts for the lifetime of a specific individual, after which the property reverts to another party.

Fixture

An item of property that is attached to a structure or land in such a way that it is considered a permanent part of the site.

Registry System

A system of recording information and transactions, often related to property ownership, to provide legal evidence and ensure public access.