Your Employer Operates in an Industry in Which Company Pre-Tax

question 16

Multiple Choice

Your employer operates in an industry in which company pre-tax earnings are expected to increase by 5% next year.Your employer,however,has issued earnings guidance in which it declared that it expects its pre-tax earnings to increase by 11% next year.As a result,which of the following elements of the Fraud Triangle are present?

• A) Attitudes
• B) Pressure to understate expenses
• C) Opportunity to overstate revenues
• D) All three elements are present

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Definitions:

Homozygous

Referring to an organism that has two identical alleles for a particular gene or trait.

Diploid

Refers to cells that contain two complete sets of chromosomes, one from each parent, typical for somatic cells in sexually reproducing organisms.

Allele Frequency

The proportion of a particular allele (variant of a gene) among all allele copies in a population.