Which of the Following Is Least Likely to Indicate Possible

question 23

Multiple Choice

Which of the following is least likely to indicate possible financial statement fraud? ​

• A)​purchase of a small competitor that resulted in goodwill
• B)​transactions that generate nonoperating income
• C)​an unusually large transaction that resulted in income for the organization
• D)​financing transactions between related parties

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Definitions:

Hydrophobic

Describes a substance that resists dissolving in water.

Phospholipid

A lipid with two (hydrophobic) fatty acid tails and a (hydrophilic) phosphate group in its head; main constituent of lipid bilayers that form cell membranes.

Aqueous

Aqueous describes something that is related to, composed of, or dissolved in water.