Problem

Which of the following combinations is a good means to conceal employee fraud but an ineff...

Which of the following combinations is a good means to conceal employee fraud but an ineffective means of perpetrating management (financial reporting) fraud?

A. Overstating sales revenue and overstating customer accounts receivable balances.

B. Overstating sales revenue and overstating bad debt expense.

C. Understating interest expense and understating accrued interest payable.

D. Omitting the disclosure information about related-party sales to the president’s relatives at below-market prices.

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