Fraudulent reporting by management could include:

Question

Fraudulent reporting by management could include:

 

A. Fictitious revenues from a fake customer.

B. Improper asset valuation.

C. Mismatching revenues and expenses.

D. All of the above.

Answer 1

A is obviously a correct choice. Management reports revenue that does not exist, from a customer who does not exist.

B. Management inflates the value of assets, for example by under-depreciating assets, or reporting investments at more than market value.

C. Management reports next year's revenue in the current year and defers this year's expense into next year. this distorts income reporting incorrect amounts.

 

D. the problem is that when a multiple choice questions has All of the above as the correct answer, it is an invalid question, because no matter what answer you select, yo are not wrong. Many writers of multiple choice questions do not understand this and write invalid questions.

Answer 2

D all of the above