Which of the Following Is a Characteristic of Fraudulent Journal

question 18

Multiple Choice

Which of the following is a characteristic of fraudulent journal entries?

• A) These contain exact numbers or inconsistent ending numbers.
• B) These are generally recorded at the beginning of the period.
• C) These are made to regularly used accounts.
• D) These are applied to intercompany or related parties.

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Definitions:

GAAP

Generally Accepted Accounting Principles represent a unified collection of accounting rules, standards, and processes that organizations in the United States are required to adhere to when preparing their financial reports.

Troubled Debt Restructuring

A process where terms of a debt are modified due to financial difficulties of the borrower, often involving concessions by the lender.

Continuation

The process of extending or carrying on an activity without interruption.

Undiscounted Sum

The total of all future cash flows associated with an investment or project without adjusting them for their present value.