Horizontal Analysis Can Be Used in Fraud Detection by ________

question 18

Multiple Choice

Horizontal analysis can be used in fraud detection by ________.

• A)checking the trend in earnings from year to year of persons suspected of fraud
• B)looking for significant changes in financial statement amounts and ratios across several fiscal periods
• C)looking for odd relations of one account to a base such as sales
• D)looking for the change in net worth of a suspect from the beginning to the end of a period

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Definitions:

Subscription Price

The price at which existing shareholders are allowed to buy additional shares of a company's stock in a rights issue, usually at a discount to the current market price.

Market Price

The market rate at which a service or asset can currently be purchased or sold.

Underwriting Spread

The underwriting spread refers to the difference between the price an underwriter pays to the issuer of a security and the price at which it sells the security to investors.

Issue Costs

Expenses associated with the issuance of new securities, including underwriting, legal, and registration fees.