Which of the Following Is an Example of False Credits/discounts

question 13

Multiple Choice

Which of the following is an example of false credits/discounts?

• A) Bjorn issued many sales invoices in the name of "Power Top Agency." However, no such agency existed, and the invoices were raised for overstating the revenue of the company.
• B) Russell recorded a sale of $10,000 as sale of $9,000 and $1,000 as sales discount. However, no such discount was provided to the customer.
• C) Shun altered a few adjusting entries in the company's cash books to conceal $4,000 that he had removed from the cash register.
• D) Armin is given a reimbursement for the medical expenses incurred by her and her family. She inflated her hospital bills to the extent of $1,500 to obtain a higher amount from the company.

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Definitions:

Negotiable

Referring to something that can be discussed or altered through negotiation, such as terms of a contract or a financial instrument.

Expansionary Gap

A situation where the total demand in an economy exceeds its potential output, leading to inflationary pressures.

Recessionary Gap

A situation in which the real GDP is lower than the potential GDP, leading to unemployment and underutilized resources.

Supply Shock

A supply shock is an unexpected event that suddenly changes the supply of a product or commodity, leading to sudden changes in its price.