With liability fraud, which of the following is most likely to occur?
A) Liabilities will be overstated
B) Balances in general that relate to this fraud will tend to be low
C) Items will be expensed rather than capitalized
D) Net income will be understated

Question

Quizplus · Accepted Answer

Liability fraud often involves understating liabilities, leading to balances that are lower than they should be. This can make a company's financial position appear stronger than it actually is.

With Liability Fraud, Which of the Following Is Most Likely