Common Types of Financial Statement Fraud Include Creating Fictitious Revenues

question 51

True/False

Common types of financial statement fraud include creating fictitious revenues from a fake customer,improperly valuing assets,and mismatching revenues and expenses.

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Definitions:

Operating Activity

Tasks and transactions related to the core business functions of an organization, such as selling products or services and manufacturing.

Cash Received

The total amount of cash a company collects from its various sources, including operations, financing, and investing activities, during a period.

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis.

Operating Activities

These are the day-to-day actions that are involved in running a business which affect the cash flow but are not investing or financing activities.