Which of the Following Fraudulent Activities Most Likely Could Be

question 14

Multiple Choice

Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal control over the revenue cycle?

• A)Fictitious transactions may be recorded that cause an understatement of revenues and an overstatement of receivables.
• B)Claims received from customers for goods returned (and unpaid for)may be intentionally recorded in other customers' accounts permitting a misappropriation of cash.
• C)Authorization of credit memos by personnel who receive cash may permit the misappropriation of cash.
• D)The failure to prepare shipping documents may lead to an understatement of inventory balances.

---

Definitions:

Vertices

The corners or points where two or more edges meet in a geometric shape.

Shifted

Refers to the transformation of a graph or equation that results in its movement to a different position on the coordinate plane, without altering its shape.

Coordinates

A set of values that show an exact position. On graphs, it usually refers to a pair of numbers that define a point in two-dimensional space.

Units

Standard quantities used to specify measurements.