Which of the Following Is Not an Example of Obvious

question 30

Multiple Choice

Which of the following is not an example of obvious financial reporting frauds as discussed in the text?

• A)Keeping the books open for a few days after the end of the reporting period.
• B)Transferring assets to an affiliate at more than their actual value.
• C)Recording as assets expenditures that should have been classified as expenses.
• D)Recording a liability when title to merchandise passes to the purchaser.

---

Definitions:

Ethical Violations

Ethical violations refer to actions or behavior that breach established codes of conduct or morality within a particular profession or community.

Relevance

The characteristic of financial information that makes it capable of influencing the decision-making process by helping users evaluate past, present, or future events.

Timeliness

The principle of providing information to users quickly enough for it to influence their decisions.

Corporations

Legal entities that are separated from their owners, with rights and responsibilities, and established to conduct business.