Which of These Is a Common Type of Fraud on Financial

question 85

Multiple Choice

Which of these is a common type of fraud on financial statements?

• A)overstating inventory.
• B)overstating cash.
• C)understating inventory.
• D)overstating cost of goods sold.

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Definitions:

Divergent

Pertains to tectonic plate boundaries that move away from each other, leading to the creation of new crust as magma rises to fill the gap.

Convergent

Pertaining to a tectonic boundary where two or more lithospheric plates move toward each other, commonly resulting in mountain formation, earthquakes, and volcanic activity.

Transform

Relates to a type of plate boundary where two tectonic plates slide past each other horizontally, often causing earthquakes.

Mid-Ocean Ridges

Underwater mountain ranges formed by plate tectonics, where new oceanic crust is created by volcanic activity along divergent plate boundaries.