Which of the Following Is an Example of Fraudulent Financial

question 12

Multiple Choice

Which of the following is an example of fraudulent financial reporting?

• A)Company management falsifies inventory count tags thereby overstating ending inventory and understating cost of goods sold.
• B)An employee diverts customer payments to his personal use,concealing his actions by debiting an expense account,thus overstating expenses.
• C)An employee steals inventory and the "shrinkage" is recorded in cost of goods sold.
• D)An employee "borrows" tools from the company and neglects to return them;the cost is reported as a miscellaneous operating expense.

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Definitions:

Marriage Rates

The statistical measure of the number of marriages occurring among the population within a given period of time, usually per 1,000 inhabitants.

Categorical Imperative

A concept in moral philosophy developed by Immanuel Kant that acts as a universal rule, requiring individuals to act in a way they wish all others would follow.

Moral Obligations

Ethical duties or commitments that arise from principles of right and wrong behavior.

Desires

Strong feelings of wanting or wishing for something to happen or be obtained.