The Type of Fraud Committed by Company Managers Who Make

question 29

Multiple Choice

The type of fraud committed by company managers who make false and misleading entries in the books, making the financial results of the company appear better than they actually are, is called:

• A) misappropriation of assets.
• B) fraudulent financial reporting.
• C) embezzlement.
• D) collusion.

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Definitions:

Depreciation Expense

Apportioning a physical asset’s cost over its estimated useful life.

Straight-Line Method

The straight-line method is a technique of allocating an asset's cost evenly throughout its useful life, commonly used for depreciation and amortization calculations.

Salvage Value

The approximated market price of an asset upon completing its useful life.

Depreciation Expense

The allocated portion of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.