A Type of Financial Statement Fraud That Is Accomplished by Shipping

question 26

Multiple Choice

A type of financial statement fraud that is accomplished by shipping more to customers than they ordered, with the expectation that they may return some or all of it is called:

• A)fictitious sales.
• B)earnings quality.
• C)channel stuffing.
• D)improper expense recognition.

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Definitions:

Gonads

The primary reproductive organs in animals, specifically the testes in males and ovaries in females, responsible for producing gametes and sex hormones.

Pituitary Gland

A small endocrine gland located in the base of the skull, called the "master gland," responsible for controlling and regulating numerous other endocrine glands and body functions.

Thyroid Gland

A gland in the neck that produces hormones regulating growth and development through the rate of metabolism.

Pancreas

A gland situated in the abdomen that plays a crucial role in digestion and regulating blood sugar levels by producing enzymes and hormones like insulin.