Which of the following is an example of
fraudulent financial reporting?
a. The treasurer diverts customer payments
to his personal due, concealing hisactions by debiting an expense account,
thus overstating expenses.
b. Company management changes
inventory count tags and overstates
ending inventory, while understating
cost of goods sold.
c. An employee steals inventory and the
“shrinkage” is recorded in cost of goods
sold.
d. An employee steals small tools from the
company and neglects to return them;
the cost is reported as a miscellaneous
operating expense
fraudulent financial reporting?
a. The treasurer diverts customer payments
to his personal due, concealing hisactions by debiting an expense account,
thus overstating expenses.
b. Company management changes
inventory count tags and overstates
ending inventory, while understating
cost of goods sold.
c. An employee steals inventory and the
“shrinkage” is recorded in cost of goods
sold.
d. An employee steals small tools from the
company and neglects to return them;
the cost is reported as a miscellaneous
operating expense