Which of the following is not an example of obvious financial reporting frauds as discussed in the text?
A)Keeping the books open for a few days after the end of the reporting period.
B)Transferring assets to an affiliate at more than their actual value.
C)Recording as assets expenditures that should have been classified as expenses.
D)Recording a liability when title to merchandise passes to the purchaser.

Question

Quizplus · Accepted Answer

Recording a liability when title to merchandise passes to the purchaser is a standard accounting practice, not a financial reporting fraud. The other options (A, B, C) involve manipulations that can distort financial statements and mislead stakeholders.

Which of the Following Is Not an Example of Obvious