Financial Statement Fraud Is

question 44

Multiple Choice

Financial statement fraud is:

• A) Putting forth another company's financial statements as your own.
• B) Any intentional or grossly-negligent violation of GAAP that is undisclosed and materially affects any financial statement.
• C) Any intentional or grossly-negligent violation of GAAP that is undisclosed and affects any financial statement.
• D) When the CEO and CFO do personally sign the financial statements.

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Definitions:

Income Changes

Alterations in a company's earnings or an individual's income, which may result from different factors like operational adjustments, market conditions, or policy changes.

Inventory Levels

Inventory levels refer to the quantity of goods and materials on hand at any given time within a business.

FIFO Cost

First In, First Out cost method, an inventory valuation method where the goods first purchased or produced are the first to be sold, affecting the value of inventory on hand and cost of goods sold.

Periodic Inventory

An inventory system where a company physically counts its inventory at specific intervals to determine the cost of goods sold and ending inventory levels.