Which of the Following Was Not Pointed to by the SEC

question 45

Multiple Choice

Which of the following was not pointed to by the SEC as a motivation for fraud in the Xerox case?

• A) Xerox misled investors by polishing its reputation on Wall Street and to boost the company's stock price
• B) Xerox top management overrode the internal control to manipulate earnings
• C) Xerox failed to disclose GAAP violations that led to acceleration in the recognition of approximately $3 billion in equipment revenues
• D) Xerox recognized a greater amount of revenue on leases in early years than warranted and didn't break out revenues that should have been deferred and recognized in future years

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Definitions:

Decrease

A reduction in size, amount, extent, or intensity of a particular thing or entity.

Level Off

The point at which something stops increasing or decreasing and remains consistent.

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Stress Increases

A situation or condition that leads to heightened levels of stress, potentially affecting health or performance.