An example of fraud in financial reporting would be

Question

Quizplus · Accepted Answer

Inflating revenues by accruing income from contracts longer than one year is an example of fraud in financial reporting, as it artificially inflates the company's revenue and gives a false impression of its financial health. The other options are either legitimate practices (allowing orders to be cancelled and advising auditors about changes in accounting procedures) or standard calculations (P/E ratio using weighted average number of shares outstanding).

An Example of Fraud in Financial Reporting Would Be