Which Ratio Will Increase in a Liability Fraud

question 23

Multiple Choice

Which ratio will increase in a liability fraud?

• A)Accounts payable ÷ purchases
• B)Interest expense ÷ notes payable
• C)Total liabilities ÷ total assets
• D)Lease expense ÷ total fixed assets

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Definitions:

Peak Period

Times when demand for goods or services is at its highest, often requiring additional resources or strategies to meet customer needs.

Variable Demand

Variability in consumer demand over time, impacting production, inventory levels, and supply chain planning.

Forward Buying

The practice of purchasing stock in larger quantities than immediately needed to take advantage of discounts or to hedge against price increases.

Peak Demand Period

The time frame when the demand for a product or service reaches its highest point.