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:

Type A Personality

A personality oriented toward extreme achievement, impatience, and perfectionism.

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, and a constant sense of urgency.

Organizational Profits

The financial gains achieved by a company after subtracting all expenses, taxes, and costs from its total revenue.

Quality Commitment

A pledge or an obligation undertaken by a company to uphold high standards in its products or services.