Financial Statement Fraud Is Considered When Someone Knowingly Makes Material

question 25

Multiple Choice

Financial statement fraud is considered when someone knowingly makes material misrepresentations of fact with the intent of making someone believe the falsehood and suffer a loss as a result of acting upon that falsehood. Which of the following would be considered fraud?

• A) Increasing the returns allowance as a result of unusually high sales near year end.
• B) Transferring non-performing assets at historical values to a non-consolidated subsidiary.
• C) Employee theft from petty cash.
• D) Purchasing several months' supply of office supplies in order to qualify for a large volume discount.

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Combination Code

An ICD code in which two diagnoses are included in one code.

Diagnoses

The identification of the nature and cause of a health issue, often determined through examination and the use of diagnostic tests.

Collectivism

Societal structure and world view in which people prioritise group loyalty, commitment and conformity, and belonging and fitting in to groups, over standing out as an isolated individual.