Which of the Following Is a Factor That Relates to Incentives

question 20

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:

Account Category

The classification of accounts into different types, such as assets, liabilities, equity, revenue, and expenses, to organize financial information effectively.

Assets

Economic resources or valuable items owned by a business, capable of being converted into cash or used in generating revenue.

Liabilities

Financial obligations a company owes to outside parties, such as loans or accounts payable.

Furniture

Movable articles intended to support various human activities such as seating, eating, and sleeping, often used to outfit a living or working space.