Which of the Following Is an Example of Financial Statement

question 63

Multiple Choice

Which of the following is an example of financial statement fraud:

• A) The sales manager records as a sale shipments of goods on January 1, 20X1, the day after year-end
• B) The financial controller capitalizes a large amount of expenses that should have been included on the income statement
• C) The CEO insists that current year bonuses be deferred to the next fiscal year for payment
• D) Both "a" and "b"

---

Definitions:

Features

Characteristics or attributes of a product or service that are considered significant or beneficial.

Variables

Variables are elements or factors that can change or vary within a study, experiment, or any situation being analyzed, potentially influencing the outcome.

Negative Publicity

Adverse or unfavorable media attention, which can significantly affect a company's or product's reputation.