The intentional preparation of misleading financial statements,known as fraudulent financial reporting,can result from all of the following except
A)the misapplication of accounting principles.
B)the manipulation of inventory records.
C)fictitious sales or orders.
D)recording a revenue that has been earned but not yet received.

Question

Quizplus · Accepted Answer

Recording a revenue that has been earned but not yet received is not an exception, as it is a common practice known as accrual accounting. The other three options involve intentionally misleading financial statements and are examples of fraudulent financial reporting.

The Intentional Preparation of Misleading Financial Statements,known as Fraudulent Financial