Which of the Following Is False Concerning "Topside" Journal Entries

question 18

Multiple Choice

Which of the following is false concerning "topside" journal entries used to commit financial statement fraud?

• A) Upper management usually records the journal entry
• B) Entries are recorded directly to the subsidiary ledger
• C) The journal entry may be recorded after normal business hours.
• D) All of the above are false

---

Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).

Publicly Available Information

Information that is not restricted and can be accessed by the general public, often used in the context of financial data and company disclosures.

Abnormal Return

A term used in finance to describe the profits or losses from a security or portfolio that differ significantly from expected or average returns.

Operating Segments

Components of a business that engage in business activities from which they may earn revenues and incur expenses, including results that are reviewed by the company's management.