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

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Definitions:

Sociocultural Concerns

Issues related to the social and cultural factors that influence individuals, communities, and societal norms and behaviors.

International Marketing

The practice of promoting and selling products or services across national borders.

Distribution Channels

Networks through which a company delivers its products or services to its customers, including pathways involving wholesalers, retailers, or direct sales.

Reduce Costs

The process of cutting expenses in order to improve profitability or financial health.