Roughly half of all financial statement frauds over the past two decades have involved:
A)improper expense recognition.
B)improper revenue recognition.
C)improper asset recognition.
D)improper liability recognition.

Question

Quizplus · Accepted Answer

Improper recognition of revenue is the most common form of financial statement fraud. Companies may manipulate revenue figures in order to meet investor expectations, increase executive bonuses or hide declining performance. This can include things like recognizing revenue before a sale is finalized, inflating sales figures, or booking revenue for goods or services that were never delivered.

Roughly Half of All Financial Statement Frauds Over the Past