Fictitious Transactions Usually Have

question 17

Multiple Choice

Fictitious transactions usually have:

• A) the same level of documentary evidence as legitimate transactions.
• B) a lower level of documentary evidence than legitimate transactions.
• C) a higher level of documentary evidence than legitimate transactions.
• D) no chance of being detected by comparing the level of documentary evidence to those of legitimate transactions.

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Definitions:

Managerial Accounting Information

Financial data and reports that are used by a company's management team to make informed operational and strategic decisions.

Reporting Standard

Guidelines and rules that organizations follow to maintain uniformity and transparency in financial reporting.

Relevance

The quality of information that indicates the information makes a difference in a decision.

Financial Statements

Documents presenting the financial activities and condition of a business, including statements like profit and loss accounts, and balance sheets.