A Faulty Journal Entry Is an Example of Which Kind

question 8

Multiple Choice

A faulty journal entry is an example of which kind of fraud symptom?

• A) Accounting anomalies
• B) Internal control weaknesses
• C) Unusual behaviors
• D) Analytical anomalies

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Cost Flow Assumption

An accounting principle that determines how costs are allocated to inventory and cost of goods sold, examples include FIFO, LIFO, and average cost methods.

Cost of Goods Sold

The immediate expenses related to the creation of products that a company sells.

Merchandise on Credit

Goods that have been sold but not yet paid for, implying that the buyer owes the seller money.