Which of the Following Is a Factor That Relates to Incentives

question 71

Multiple Choice

Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting?

• A) significant accounting estimates involving subjective judgments
• B) excessive pressure for management to meet debt repayment requirements
• C) management's practice of making overly aggressive forecasts
• D) high turnover of accounting, internal audit, and information technology staff

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Definitions:

American Coffee Chain

A retail business model that operates stores across the United States, serving coffee and related products.

Sales Revenue

The gross income earned from the sales of goods or services before removing any expenditures.

Industry Potential

The future growth opportunities and profitability that exist for companies within a particular sector.

Market Share

The percentage of an industry's sales that is earned by a particular company over a specific time period.