Which of the following is not a potential fraud related to debt?
A)Long-term or short-term debt is misclassified.
B)Entire loan payments are charged to either principal or interest.
C)Dividends are paid in violation of restrictive covenants.
D)Debt is not properly authorized.

Question

Quizplus · Accepted Answer

Dividend payments relate to equity, not debt. Therefore, it is not a potential fraud related to debt. The other options listed are potential frauds related to debt.

Which of the Following Is Not a Potential Fraud Related