The Most Common Fraud Committed on Behalf of an Organization

question 38

Multiple Choice

The most common fraud committed on behalf of an organization is:

• A)Vendor fraud
• B)Employee embezzlement
• C)Fraudulent financial reporting
• D)Customer fraud

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Definitions:

Stockholders' Equity

The remaining value of a corporation's assets after all liabilities have been subtracted, signifying the shareholders' ownership stake.

Comprehensive Income

All changes in stockholders’ equity during a period, except those resulting from dividends and stockholders’ investments.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income or loss over a specified period.

Stockholders' Equity

The corporation's residual interest in the assets of the company after deducting liabilities.