Which of the Following Combinations Is a Good Means to Conceal

question 92

Multiple Choice

Which of the following combinations is a good means to conceal employee fraud but an ineffective means of perpetrating management (financial reporting) fraud?

• A) Overstating sales revenue and overstating customer accounts receivable balances.
• B) Overstating sales revenue and overstating bad debt expense.
• C) Understating interest expense and understating accrued interest payable.
• D) Omitting the disclosure information about related-party sales to the president's relatives at below-market prices.

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Definitions:

Frederick W. Taylor

Known as the father of scientific management, he introduced methods for improving industrial efficiency.

Optimum Shovel Load

The ideal quantity of material a shovel can efficiently move at one time, maximizing productivity while minimizing physical strain and operational costs.

Operational Approach

A method of addressing problems or tasks focusing primarily on the practical and efficient achievement of objectives.

Management

The process of dealing with or controlling things or people, often within an organizational setting.