Which of the following is not an example of egregious financial reporting frauds as discussed in the text?
A)Keeping the books open for a few days after the end of the reporting period.
B)Transferring assets to an affiliate at more than their actual value.
C)Recording as assets expenditures that should have been classfied as expenses.
D)Recording a liability when title to merchandise passes to the purchaser.

Question

Quizplus · Accepted Answer

Recording a liability when title to merchandise passes to the purchaser is a standard accounting practice, not an example of financial reporting fraud. The other options (A, B, C) involve manipulations that could misrepresent the financial condition of a company, which can be considered fraudulent.

Which of the Following Is Not an Example of Egregious