Which of the Following Are Clues That a Company May

question 137

Multiple Choice

Which of the following are clues that a company may have been "cooking the books" by fraudulently increasing their level of net sales?

• A) Several shipping clerks checked into hospitals from lifting heavy boxes.
• B) There was a very high level of returned goods shortly after year-end.
• C) Several company warehouses reported burglaries.
• D) There was a high level of inventory purchases in the following period.

---

Definitions:

Differential Carrier Housing

A component that encases the differential gear system, protecting it and supporting its function in a vehicle.

API GL-5

A specification for lubricating oils set by the American Petroleum Institute (API), indicating suitability for high-load, high-speed conditions.

Lube

Short for lubricant, a substance applied to reduce friction between moving parts in machinery or engines, extending their lifespan.

Geartrain Components

The individual parts that make up a geartrain, including gears, shafts, bearings, and casings, working together to transmit power in machinery.