With liability fraud, which is most likely to occur?
A) Liabilities will be overstated
B) Interest expense will increase
C) Items will be expensed rather than capitalized
D) Net income will be understated
E) Balances in general that relate to this fraud will tend to be low

Question

Quizplus · Accepted Answer

A: A is incorrect because it will more than likely be understated
B: B is incorrect because it is more than likely decrease
C: C is incorrect because it will be an issue of capitalization rather than expense
D: D is incorrect because net income will probably be overstated
E: E is correct-Balances related to liability fraud will tend to be low

With Liability Fraud, Which Is Most Likely to Occur