Which is not a symptom of liability fraud?
A) Decrease in warranty expense estimate
B) Accounts payable grow faster than cost of goods sold & inventory
C) Unusual increase in current ratio
D) Decrease in accruals & unearned revenue from prior periods

Question

Quizplus · Accepted Answer

B: Correct: If accounts payable were to grow slower than cost of goods sold and inventory, it might indicate liability fraud.

Which Is Not a Symptom of Liability Fraud