Asset Frauds Are Often Easier to Detect Than Liability or Disclosure

question 58

Multiple Choice

Asset frauds are often easier to detect than liability or disclosure frauds because

• A) Overstated assets are always included on the balance sheet while the other frauds are not.
• B) Overstated assets have better document evidence than the other frauds.
• C) Assets can be physically labeled by the employer.
• D) Understated liabilities use a series of smaller entries while the asset frauds do not.

---

Definitions:

Table Salt

A white crystalline substance that gives seawater its characteristic taste and is used for seasoning or preserving food, chemically known as sodium chloride (NaCl).

Water

A clear, flavorless, scentless, and almost colorless substance that is the primary component of the Earth's hydrosphere and the liquids found in every recognized living organism.

Hydrogen Bond

A delicate association between two molecules facilitated by the electrostatic attraction between a proton present in one and an electronegative atom in the other.

Ionic Bond

A chemical bond formed between two ions with opposite charges through the transfer of electrons.