Which of the Following Is a Possible Indicator of Concealment

question 36

Multiple Choice

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

• A) Increases in operating losses that are not explained by economic factors
• B) The size of orders placed on credit and the credit balances with suppliers suddenly and dramatically decrease
• C) A sudden change in management is made without public notice
• D) The company sells goods at large discounts

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Definitions:

Generate Funds

The process of creating financial resources for a company through various means such as operations, financing, or investments.

External Financing

Funds raised from outside the company, typically through borrowing, issuing equity, or receiving grants, as opposed to internal funds generated from operations.

Full Capacity

The maximum level of output that a company can sustain over a period of time without increasing costs.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets.