Which of the following actions can distort company records and result in fraudulent financial reporting?
A) Prepaying an expense and recording it as an asset
B) Collecting revenue in advance of earning it
C) Recording income that has not yet been earned
D) Recording an expense that has been incurred but has not yet been paid

Question

Quizplus · Accepted Answer

Recording income that has not yet been earned can inflate revenue figures and mislead stakeholders, resulting in fraudulent financial reporting.

Which of the Following Actions Can Distort Company Records and Result