Which of the Following Relatively Small Misstatements Most Likely Could

question 30

Multiple Choice

Which of the following relatively small misstatements most likely could have a material effect on an entity's financial statements?

• A) An illegal payment to a foreign official that was not recorded.
• B) A piece of obsolete office equipment that was not retired.
• C) A petty cash fund disbursement that was not properly authorized.
• D) An uncollectible account receivable that was not written off.

---

Definitions:

Defense of Marriage Act

A now-defunct U.S. federal law enacted in 1996 that defined marriage as the union between one man and one woman for federal and inter-state recognition purposes, before being ruled unconstitutional.

Gay Marriage

The legally or socially recognized marriage between two individuals of the same sex.

Peer Delinquent Subculture

A group of peers with norms and values that deviate from mainstream society's, often engaging in anti-social or criminal behavior.

Brothel Sex Worker

An individual who provides sexual services for money within a brothel, a place specifically dedicated to prostitution.