Which of the Flowing Statement About Fraud Is Not True

question 8

Multiple Choice

Which of the flowing statement about fraud is not true?

• A) Most frauds start small and, if not detected, continue to grow larger and larger.
• B) Events that scare or threaten the perpetrator result in discontinuance of the theft.
• C) When scare or threat disappear, the fraud perpetrator will test the system by stealing small amount of money.
• D) None of above

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presenting the results of operations, financial position, and cash flows.

Gross Profit

The financial metric representing the difference between sales revenue and the cost of goods sold before deducting administrative and selling expenses.

Product Costs

Product costs include all costs directly associated with the production of goods, including raw materials, direct labor, and manufacturing overhead.

Expenditures

Outflows of cash or other valuable assets from a person or company to pay for goods or services.