Financial Statement Fraud Differs from Earnings Management in Terms of

question 124

Multiple Choice

Financial statement fraud differs from earnings management in terms of

• A) legality.
• B) terminology.
• C) procedures.
• D) the parties involved.

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Definitions:

Collection Float

The time difference between when a check is deposited into a bank account and when the amount is credited to the account, affecting the cash flow.

Collection Float

The time period between when a check is deposited into a bank account and when the amount is available for use.

Net Float

The difference between checks written and deposited in the bank not yet cleared or settled.

Ledger Balance

The total balance in a ledger account at a particular point in time, reflecting all transactions up to that moment.