Which of the Following Is NOT Useful in Detecting a Fraud

question 48

Multiple Choice

Which of the following is NOT useful in detecting a fraud where fictitious assets are recorded in financial statement accounts?

• A) Total fixed assets÷total assets
• B) Total fixed assets÷long-term debt
• C) Individual fixed asset account balances÷total fixed assets
• D) Fixed assets÷total current liabilities

---

Definitions:

Common Law

A legal system characterized by court-made precedents and inherited from England, forming the basis of jurisprudence in the United States and other countries formerly part of the British Empire.

Contracts

Legally enforceable agreements between two or more parties that create mutual obligations.

Invitation to Negotiate

A communication or action that suggests willingness for discussions to explore potential agreements or terms, but not constituting an official offer.

Legal Determination

The official decision or conclusion reached by a judge, agency, or regulatory body on matters of law.