Creative Accounting Is Sometimes Used To

question 4

Multiple Choice

Creative accounting is sometimes used to:

• A) Reduce reported losses
• B) Manipulate accounting ratios
• C) Make management look successful
• D) All of the above

---

Definitions:

Market Average

A statistical measure that represents the overall movement of a specific set of stocks, indicating the general health of the stock market.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method or decision.

Welfare Fraud

The act of illegally using or obtaining government assistance benefits by knowingly providing false information or withholding information.

Welfare Abuse

The misuse or fraudulent use of government assistance programs designed to help those in need.