Which of the Following Is Not a Potential Fraud Indicator

question 54

Multiple Choice

Which of the following is not a potential fraud indicator in the acquisition cycle?

• A)expenses that are significantly above or below industry norms.
• B)expense accounts that have significant debit entries.
• C)payments made to senior officers in the form of loans that are subsequently forgiven.
• D)capital assets that seem to be growing faster than the business.

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Definitions:

Pink Flamingo

A type of decoration often used in gardens and lawns, characterized by its bright pink color and flamingo shape.

Artisans

Skilled craft workers who make or create items by hand that may be functional or strictly decorative, such as furniture, clothing, jewelry, and household items.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Bubbles

In economics, a market condition characterized by rapid escalation of asset prices followed by a contraction.