An example of fraudulent financial reporting is _______.
A)timing differences such as bringing forward the recognition of revenues and delaying the recognition of expenses
B)writing checks to fictitious vendors
C)using company cars for personal use
D)theft of inventory by employees

Question

Quizplus · Accepted Answer

Fraudulent financial reporting often involves manipulation of the company's financial records to present a more favorable financial position than actually exists. Bringing forward the recognition of revenues and delaying the recognition of expenses can artificially inflate a company's profits, making it a form of fraudulent financial reporting. Choices B, C, and D describe other types of fraud or misuse of company assets but do not directly relate to the manipulation of financial statements.

An Example of Fraudulent Financial Reporting Is _______