Which of the Following Situations Provides the Most Likely Indication

question 103

Multiple Choice

Which of the following situations provides the most likely indication that fraud exists?

• A) Exelon Corporation's earnings per share this quarter is 10% higher than last quarter.
• B) Quantum Corporation's sales this year is 20% higher than last year's sales.
• C) Papillon Product Inc.'s profits have increased each for the last 5 years, but its cash reserves have decreased steadily in the same time period.
• D) Bobadilla Bookstores opened 10 new stores during the most recent quarter.

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Definitions:

Human Resources

The department within an organization that is responsible for the management of employee-related processes including recruitment, training, and compliance with labor laws.

Termination

The act of ending or concluding something, such as a contract, employment, or a legal relationship.

Outside Salesperson

A sales representative who travels to meet with potential clients in their locations rather than working from the employer's business site.

Overtime Compensation

Refers to the additional pay provided to employees for hours worked in excess of the standard working hours.