The Goal of Overstating Earnings by Using Fraud Is

question 46

Multiple Choice

The goal of overstating earnings by using fraud is:

• A) to deflate the amount of taxes the corporation pays.
• B) to overstate the cost of goods sold.
• C) that it may help to increase the stock price of the company.
• D) to overstate receivables.
• E) to deflate accounts payable.

---

Definitions:

Defined Benefit Plan

A type of pension plan where the benefits that the employee will receive upon retirement are predefined, usually based on factors like salary and years of service.

Money Purchase Plan

A type of defined contribution retirement savings plan where employer and employee contributions are fixed.

Canada Pension Plan

A mandatory public retirement insurance program in Canada, providing income to retired workers.

Defined Contribution Plans

Retirement savings plans where the amount contributed to an employee's account is defined, but the payout at retirement depends on the account's investment performance.