Which of the Following Is Not a Fraud Scheme Affecting

question 4

Multiple Choice

Which of the following is not a fraud scheme affecting the revenue accounts?

• A) Related-party transactions
• B) Side agreements
• C) Double counting
• D) Lapping

Calculate and account for the equity in investee income.

Determine the impact of intra-entity transactions on the investment account.

Prepare appropriate journal entries related to the equity method of accounting.

Understand the effects of buying and selling portions of investments on the investment account balance.

---

Definitions:

Merchandise Inventory

The value of a company's current inventory of goods available for sale.

Perpetual System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory

Products that a retailer, wholesaler, or distributor has in stock and available for sale.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.