Question

of the five major classif ment Timing diffences 4. Which of the following is not one of the financial statement fraud? A. Fictitious revenues B. Improper disclosures C. Concealed liabilities D. Channel stuffing I proper casset Which of the following is not a fictitious revenues A. Matching expenses to revenues B. Premature revenue recognition C. Conditional sales de D. Channel stuffing timingy doblear the 6. Given the four criteria necessary for a sale to be complete following is not one of those conditions? A. Delivery has occurred or services rendered. B. Cash has been collected. C. The sales price is fixed or determinable. D. Documentation exists that can serve as evidence of a sale. to be complete, which of te 7. Of the following, choose the one that depicts a situation where liabilita and expenses are manipulated to make a company appear more prode A. Liabilities are capitalized to increase revenues B. Adelphia Communications fraud Nabilities

Answer 1

Answer . (4) Ansluer. - Channel stuffing is not one of the fire major classifications of financial statemeed fraud. . option D is correct, a five major classifications of financial statement fraud are.. x fictitious revenues. * timing differences. & improper asset valuations * Concealed liabilities and expenses. * improper disclosures. .. conditional sales is not a fictitional revenue søheme. option c is correct. Explanation fictitious revenue scheme does not provide any actual goods or services. Conditional sales involved the sale of intangible physical assets. these include vehicles, real estate, tools ete..

(6) (6) option 'B' is correct. * cash has been collect". cash collected is not the condition for sale to be complete as sale even may be on credit so it is not a mattee.