Which of the Following Is Not an Example of One

question 64

Multiple Choice

Which of the following is not an example of one of the basic types of fraud?

• A)While straightening the store at the end of the day,a shoe store employee finds and keeps an expensive pair of sunglasses left by a customer.
• B)An executive devised and implemented a plan to accelerate revenue recognition on a long-term contract,which will allow the company to forestall filing for bankruptcy.The executive does not own any stock,stock options or grants,and will not receive a bonus or perk because of the overstated revenue.
• C)A purchasing agent places a large order at higher-than-normal unit prices with a vendor that gave the agent tickets to several football games.
• D)A salesperson approves a large sales discount on an order from a company owned partially by the salesperson's sister.

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Definitions:

Interest

The fee paid for borrowing money, typically expressed as an annual percentage of the principal.

Relinquished

Refers to the act of giving up or surrendering a right, possession, or claim.

Capital Account Balance

The amount recorded in a company's equity section of the balance sheet that represents the total capital from owners or shareholders.

Partnership Profits

Partnership profits refer to the net earnings generated from the operations of a partnership, which are shared among partners according to their partnership agreement.