What is the purpose of fraudulent 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)So the stock price increases and managers benefit from share appreciation of stock held.
D)B and C

Question

Quizplus · Accepted Answer

Fraudulent reporting can serve multiple purposes, including overstating net income and total assets to increase managers' bonuses and inflate the stock price, leading to benefits for managers who hold shares. Therefore, options B and C are both valid choices.

What Is the Purpose of Fraudulent Reporting