Which of the Following Is an Example of Fraud

question 61

Multiple Choice

Which of the following is an example of fraud?

• A)A mistake in processing accounting data.
• B)An incorrect accounting estimate arising from misinterpretation of facts.
• C)Misappropriation of an asset.
• D)A mistake in the application of accounting principles.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available matches precisely the amount desired by consumers at the current market rate.

Tax

Mandatory financial charge or another type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Competitive Market

A market structure characterized by a large number of buyers and sellers, freedom of entry and exit, and a product that is homogeneous across suppliers, where no single buyer or seller can influence the market price.