In liability fraud, liabilities are most often:
A) understated.
B) overstated.
C) recorded as assets.
D) recorded as expenses.

Question

Quizplus · Accepted Answer

In liability fraud, liabilities are understated, or not recorded accurately, in order to make a company appear more financially stable than it actually is. This can be done by misrepresenting the amount of debt owed, failing to record certain liabilities, or recording certain liabilities at lower values than they should be.

In Liability Fraud, Liabilities Are Most Often