Which of the Following Is a Symptom of Accounts Payable

question 38

Multiple Choice

Which of the following is a symptom of Accounts Payable fraud?

• A) Discrepancies in cut-off tests
• B) Discussion of Contingent liabilities in Board Minutes
• C) Liens on properties that are supposed to be paid for
• D) None of the above

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Definitions:

Direct Materials

Raw materials directly attributed to the production of goods.

Conversion Costs

Costs in manufacturing that include both direct labor and overhead costs, specifically associated with the conversion of raw materials into finished goods.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, depreciation, and maintenance, not directly tied to production.