Management has been found involved in many fraudulent schemes;a common one is "channel stuffing." What does "channel stuffing" involve?
A)Overly complex transactions.
B)Growth through stock acquisitions.
C)Shipment of goods not ordered.
D)Management compensation schemes.

Question

Quizplus · Accepted Answer

"Channel stuffing" involves shipping more goods than customers have ordered in order to artificially inflate sales numbers and deceive investors and analysts about the company's performance. This fraudulent tactic can lead to a surplus of inventory and ultimately damage the company's reputation and financial stability.

Management Has Been Found Involved in Many Fraudulent Schemes;a Common