What Type of Fraud Involves Intentional Deception on the Part

question 25

Multiple Choice

What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

• A)Channel
• B)Integrative
• C)Consumer
• D)Product
• E)Conventional

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Definitions:

Adjustment

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.

Percent of Sales Method

A financial forecasting tool used to estimate certain balance sheet and income statement accounts based on a projected sales figure.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are written off as a bad debt expense.

Credit Sales

Sales where the customer is allowed to pay for the product or service at a later date, extending credit.