What is the purpose of fraudulent financial reporting?
A)Net income and total assets are understated so managers can receive their bonuses.
B)Net income and total assets are overstated so managers can receive their bonuses.
C)A company can borrow money that would not otherwise be available.
D)B and C

Question

Quizplus · Accepted Answer

Fraudulent financial reporting often involves overstating net income and total assets to make the company appear more profitable and financially stable than it actually is. This can help managers receive bonuses based on inflated performance metrics and can also make the company more attractive to lenders, allowing it to borrow money that might not be available based on its true financial condition.

What Is the Purpose of Fraudulent Financial Reporting