Chase is a forensic accountant who has been hired by the local district attorney to investigate a possible case of embezzlement. He found boxes of records that suggest several thousands of dollars of vendor payments might have been falsified. The effect of those false transactions would probably show up as ___________________________________.

Question

Quizplus · Accepted Answer

False transactions involving vendor payments would result in higher expenses on the income statement, since the payments would be recorded as expenses even though they were not actually made. It would not affect assets, owner's equity, or revenue.

Chase Is a Forensic Accountant Who Has Been Hired by the Local