Sam Jones,controller of Mitnikco,spends Three Days Researching the Accounting Standards

question 97

Multiple Choice

Sam Jones,controller of Mitnikco,spends three days researching the accounting standards to find loopholes in the "rules" and to make a case for recognizing revenue earlier,rather than in later years.In the end,Sam and the other members of management determine that they will reduce the company's deferred revenue accounts and begin accounting for all revenues as agreements are signed.Based solely on the preceding information,which element of fraud is represented by the actions of Mitnikco management?

• A)Pressures.
• B)Opportunity.
• C)Rationalization.
• D)Skepticism.

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Definitions:

Missoula, Montana

A city in the U.S. state of Montana, known for its natural beauty and as the home to the University of Montana.

Cluster Samples

A sampling technique where the population is divided into groups, or clusters, and a sample of these clusters is selected for study.

Population Members

Individuals or items that make up the complete set being studied in a statistical analysis.

Population Members

The individuals or items that make up the entire group being studied in statistical analysis.