Which of the following is least likely to indicate possible financial statement fraud?
A) Purchase of a small competitor that resulted in goodwill
B) Transactions that generate nonoperating income
C) An unusually large transaction that resulted in income for the organization
D) Financing transactions between related parties

Question

Quizplus · Accepted Answer

The purchase of a small competitor that resulted in goodwill is a normal accounting practice and does not necessarily indicate possible financial statement fraud. The other options, such as transactions generating non-operating income, an unusually large transaction resulting in income, and financing transactions between related parties, are all red flags for possible financial statement fraud.

Which of the Following Is Least Likely to Indicate Possible