Which of the Following Balance Sheet Accounts Is Not Often

question 30

Multiple Choice

Which of the following balance sheet accounts is not often misstated when a company commits financial statement fraud?

• A) Accounts payable
• B) Inventory
• C) Accumulated Depreciation
• D) All of the above are accounts often misstated.

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Definitions:

Contribution Margin Ratio

A financial metric that measures how a product's selling price covers variable costs, expressed as a percentage of sales revenue.

Unit Contribution Margin

Unit contribution margin is the difference between the selling price of a product and its variable costs, indicating how much each unit sold contributes to covering fixed expenses and generating profit.

Sales

The total revenue generated from goods or services sold by a company over a specified period.

Pretax Income

The amount of income earned by a business before any taxes have been deducted.