The Two Most Common Types of Fraud Impacting the Financial

question 18

Multiple Choice

The two most common types of fraud impacting the financial statements are:

• A)fraudulent financial reporting and e-commerce fraud.
• B)misappropriation of assets and embezzlement.
• C)fraudulent financial reporting and misappropriation of assets.
• D)cooking the books and fraudulent financial reporting.

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Definitions:

OEM Recommendations

Guidelines or advice given by the Original Equipment Manufacturer regarding the maintenance, use, or repair of their product.

Contribution Margin

The amount by which the sales of a product or service exceed the variable costs associated with its production, contributing towards covering fixed costs and generating profit.

Depreciation Expense

The allocated portion of the total cost of a company's physical assets that is expensed out on the income statement over a set period, reflecting the asset's consumption and wear and tear.

Fixed Costs

Costs that do not change with the level of production or sales, including expenses like rent, salaries, and insurance.