Which of the Following Is Not a Potential Fraud Related

question 63

Multiple Choice

Which of the following is not a potential fraud related to stockholders' equity accounts?

• A)Stock sales or issuances are not authorized.
• B)Entire loan payments are charged to either principal or interest.
• C)Dividends are paid in violation of restrictive covenants.
• D)Stock options are back-dated.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Normal Good

A normal good is one whose demand increases as consumer income rises and decreases when consumer income falls, holding other factors constant.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Complements

Complements are goods or services that are used together, so that the consumption or use of one increases the demand for the other.